Residential construction companies see growth in Build to Rent market
Though the COVID-19 pandemic has caused major disruptions in the building industry as a whole, residential construction companies in the UK were kept busy as evidenced by the strong growth of the build-to-rent housing supply.
The numbers revealed from research published by the British Property Federation show that the build-to-rent sector has been particularly resilient amidst the pandemic with a 22% jump in the number of projects in the planning phase and 5% more under construction.
In addition to this, there has also been a 23% increase in the number of completed homes from Q4 2019 to Q4 2020. This accounts for 4% of all new homes in England and Wales, and a fifth of all new homes in London in the last quarter of 2020 when looking at government EPC data.
The build-to-rent housing supply keeps growing in outer London Boroughs, outpacing the capital in both current and future supply. While London is competing with other regions for investment, its number of new homes in the planning phase has stabilized with a narrow 2% increase.
Focusing on future supply, every region in the UK registered positive growth, with the planning pipeline in Northern Ireland being the frontrunner followed by the East of England and Scotland. When it comes to the largest number of build-to-rent homes out of London- including complete, under construction, and in planning – the North West boasts of 32,395 units.
Even though the number of build-to-rent homes under construction has dropped in the North East (-38%), North West (-23%), and South West (-19%) in the final quarter, the remarkable surge in the number of homes in planning suggests a promising future in these regions.
Potential for more growth
The build-to-rent sector has shown strength and stability due to massive investments throughout 2020 and the ability of residential construction companies to overcome the hurdles of the pandemics by adopting innovative construction methods.
This is a game-changer for property investors looking for long-term assets as this sector has proven to be a stable investment option and still holds room for further growth.
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Look no further than Jerram Falkus. We are an experienced family-run construction business with a healthy portfolio in the residential sector that includes the Kingston House and Oman Avenue, among other construction projects.
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