London remains the UK’s dominant force in today’s build-to-rent market, with few signs of slowing down anytime soon.
In the two years since the start of pandemic, the UK has seen a whopping 28,065 build-to-rent properties built. This is a 19% increase compared to the two years prior to the pandemic when nationwide completions averaged at 23,589.
London on top
London is leading the way for landlords and prospective tenants with its 35% increase in market stock since the start of 2020, a figure which is unmatched by the rest of the UK. Across the capital, over 13,000 build-to-rent units have been added to the market over the course of these past two years, whereas pre-covid levels in the same period saw only 9,716.
The rest of Britain following suit
Outside of London, the UK sees numbers rise from 13,873 to 14,942 which is an increase of 8%. London’s presiding presence within the build-to-rent market means that the capital now accounts for 48% of all completions post-pandemic, with the rest of the UK adding up to 52%.
Now is the time to invest
With house prices reaching historical heights in today’s buoyant property market, landlords across London are cashing in on the sure-fire investment and adding to the much-needed supply of rental property to the market. Now could be the best time to invest as high paying and long-term tenants have never been easier to attract.
Meeting the demand
With London being the most sought-after location in the UK, demand remains rampant and buyers competitive. With rent prices rising for five consecutive months in a row this year as a reaction to historically high rates of demand, London’s ever-growing build-to-rent sector is holding up a large chunk of the weight.
The momentum of demand shows no signs of slowing down any time soon, but quality of rental housing still remains at the forefront of priorities for London build-to-rent investors. While London’s residents have long recognised the benefits of living in the nation’s capital, home hunters emerging on the heels of the pandemic evidently have a new and increased appetite for high quality, secure and well-managed rental accommodation. And in a market so buoyant and competitive, a home that is feasible long term makes much more sense.
Long term solution
Landlords rejoice as long-term tenancies spike in London and across the UK, evading financially challenging void periods and high turnover rates. Homes are more valuable than ever and tenants in suitable and affordable rentals are unlikely to find the same elsewhere with such little supply and prices growing by the month.
Why these are all good things…
This year’s buoyancy and high market activity has brough a welcomed and rejuvenated level of certainty to the market, driven by a return to the workplace and working-from-home culture leading tenants to minimise their commute or maximise their homelife now more than ever. As a result, London sees rental values and profits return to and exceed pre-pandemic levels, which is great news for the capital’s landlords.