The UK’s build-to-rent sector could soon take a 20% share of the new homes market if it follows trends seen in the US.

New research from letting agent Ascend Properties reports huge growth potential in the sector where an estimated 11,723 build-to-rent homes – mainly apartments for professionals – are due to complete this year, a 22% increase in just four years.

The comparable Stateside build-to-rent model – known as multi-family – completions are set to top 327,718 units this year, a 19% jump from 2018.

Multi-family completions accounted for 23% of all new builds in the US that year, with this number staying consistent last year (22%), while in the UK build-to-rent accounted for just 4% of all new build completions in 2018, climbing to 6% last year.

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However, Ascend believes this is an impressive rate of growth for a sector yet to fulfil its full potential and predicts this could change as the emerging market becomes more established.

Tailor-made

Both countries deliver tailor-made accommodation for long-term living within the rental sector, with a focus on community and plenty of amenities.

As the build-to-rent sector is growing fast, it won’t be long before it’s accounting for the same proportion of new builds in the UK, if not more, says MD Ged McPartlin. “A comparison of the multi-family model and the build-to-rent sector isn’t quite comparing apples with apples, but the ethos is very much the same and so is the end result,” he adds.

“The multi-family market is a trillion-dollar business and accounts for more than a quarter of all real estate investment in the US. While we have quite some way to go in achieving this sort of dominance in the build-to-rent sector, the sharp growth seen in recent years suggests we are well on our way.”

1 COMMENT

  1. “The UK’s build-to-rent sector could soon take a 20% share of the new homes market if it follows trends seen in the US.”

    I could soon be a lottery winner if I buy a ticket. The words ‘could’ and ‘if’ are important here and don’t indicate any kind of certainty.

    “mainly apartments for professionals ” Here’s google’s definition of ‘professionals’:

    “professional
    /prəˈfɛʃ(ə)n(ə)l/
    Learn to pronounce
    adjective
    1.
    relating to or belonging to a profession.
    “young professional people”
    Similar:
    white-collar
    executive
    non-manual
    Opposite:
    manual
    2.
    engaged in a specified activity as one’s main paid occupation rather than as a pastime.
    “a professional boxer”
    Similar:
    paid
    salaried
    non-amateur
    full-time
    Opposite:
    amateur
    noun
    1.
    a person engaged or qualified in a profession.
    “professionals such as lawyers and surveyors”
    Similar:
    white-collar worker
    professional worker
    office worker
    2.
    a person engaged in a specified activity, especially a sport, as a main paid occupation rather than as a pastime.
    “his first season as a professional”

    Should the article say ’employed’ rather than ‘professional’? Or do they really mean people such as lawyers or those with a specified activity, or just those with an ordinary job? If I work on a factory line would I be excluded from renting? Is there some ‘No DSS’ discrimination going on here?

    “The comparable Stateside build-to-rent model – known as multi-family – completions are set to top 327,718 units this year, a 19% jump from 2018.”

    multifamily
    /mʌltɪˈfam(ə)li/
    adjective
    adjective: multi-family
    denoting or relating to accommodation designed for occupation by more than one family.
    “multifamily housing”

    I hope they don’t mean this, but it sounds like slums in the making. If they mean flats/apartments why don’t they just say that.

    I can’t help but get the overwhelming feeling that this is about squeezing in as many families as possible in a small land footprint.

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