Foxtons examined annual build-to-tent completions, considering the total market stock since 2018, to understand the sector’s proportion in the overall Private Rented Sector (PRS) and its evolving market share.
In 2018, build-to-rent completions amounted to 31,409, constituting only 0.6% of the 5.5 million privately rented homes in the lettings sector. However, the industry has consistently grown yearly, reaching 58,844 units in 2020, surpassing 1% of the total private rental market for the first time.
By 2023, the number of build-to-rent units rose to 100,372, indicating a remarkable 69% increase since 2013. In comparison, the total PRS stock increased by only 3% during the same period. Currently, the build-to-rent sector is estimated to represent 1.8% of the entire private rental market stock, marking the highest proportion since 2018.
The growth is even more pronounced in the London market. In 2018, build-to-rent completions comprised only 1.8% of the capital’s total PRS stock. However, consistent annual growth has led to a substantial increase. Foxtons’ analysis reveals that build-to-rent homes now constitute 4.2% of London’s PRS stock, with completions rising by 61% since 2018.
Discover More: If you’re looking for more property market information, see our guides on property investments with high returns and whether property is still a good investment.
