Build-to-rent statistics

Written by Atousa Cunnell, Content Producer - Mortgages27 September 2024

The build-to-rent scheme exists to address the housing supply crisis, offering high-spec living with modern amenities - but how successful has the scheme been?

Feature image of a family moving into a home with the text 'Build-to-rent statistics'

According to recent UK rental market statistics, more than two-thirds (67%) of landlords reported increased tenant demand in Q2 2023. As demand outstrips supply, the build-to-rent scheme can help support the market.

As part of our comprehensive landlord hub, let’s delve deeper into what build-to-rent is, and the latest statistics for 2024.

What does build-to-rent mean?

Introduced in 2012, the build-to-rent scheme promotes the construction of property developments with the intention of appealing to renters rather than prospective homeowners.

As these are new-builds, they typically come with modern on-site amenities such as co-working areas and gyms.

These properties are not typically owned by individual investors but rather developers who invest and manage each project on a long-term scale.

Do build-to-rent projects need to provide affordable housing?

The National Planning Policy Framework outlines that build-to-rent schemes must provide affordable housing in the form of affordable private rent.

Projects are expected to have at least 20% discounted market rent homes, which must be maintained in perpetuity.

Rent for these homes must have a minimum discount of 20% lower than local market rents, and this should increase as the market does.

Build-to-rent statistics 2024

Top build-to-rent statistics

Build-to-rent homes, now numbering 100,681, make up 2.19% of the private rental market (4.6 million households).
In 2023, 44% of build-to-rent tenants moved into a development outside their local area, up from 37% in 2019.
The future build-to-rent pipeline consists of 112,800 homes, including those in the pre-planning stage.

Mini infographic with the text 'There are 100,681 build-to-rent homes in the UK, making up 2.19% of the private rental market (Q2 2024)'.

Build-to-rent market statistics

As of the second quarter of 2024, nearly 116,000 (115,778) build-to-rent projects have been completed across the UK. This is an increase of almost a quarter (23.67%) from the same period last year (Q2 2023), when only 93,621 projects had been completed.

A breakdown of the current status of build-to-rent projects (Q2 2024)

Comparative bar chart showing the number of build-to-rent projects in planning, under construction, completed, and in total, in Q2 2023 and Q2 2024.

Status	Q2 2023 total	Q2 2024 total	Percentage change
In planning	102,490	100,681	-1.77
Under construction	56,347	45,410	-19.41
Complete	93,621	115,778	23.67
Total	252,458	261,869	3.73

(Source: Savills)

As more build-to-rent projects are completed, the number of those in planning and under construction naturally decreases. However, the number of projects in the planning phase has mitigated this drop, with only a -1.77% increase (from 102,490 to 100,681), indicating a continued steady uptake in developers interested in build-to-rent.

The number of build-to-rent projects under construction has decreased as more are completed. However, the steep drop of nearly a fifth (-19.41%) suggests a delay in the progress of these projects moving between planning and construction.

Build-to-rent investment statistics

The build-to-rent scheme received its second-highest influx of investment in 2023, at £4.5 billion. This is a decrease of c.-2.17% from 2022, when around £4.6 billion was invested into projects around the UK.

Build-to-rent tenant statistics

Build-to-rent properties typically come with many desirable amenities, such as on-site gyms, communal lounges, and co-working spaces, and build-to-rent tenant statistics indicate that the draw of these properties is encouraging tenants to move further than for typical rental properties.

A breakdown of the median distance moved by tenants for build-to-rent, buy-to-let, and private rented sector properties across the UK

Comparative horizontal bar chart showing the median miles moved for build-to-rent, new-build buy-to-let, and general private rented sector homes in various types of locations across the UK.

Location	Build-to-rent	New-build buy-to-let	Private rented sector
Inner London	4.6	3.7	3.5
Outer London	4.8	4.3	2.9
Core cities	8.3	5	3.1
Secondary cities	5	3.5	2.4
Regional hubs	5.7	4.7	3.1

Note: Core Cities = Manchester, Leeds etc. Secondary Cities = Leicester, Milton Keynes, etc. Regional Hubs = Horsham, Stevenage etc.

(Source: Savills)

Across the UK, the median distance tenants move for build-to-rent properties is 5.8 miles, nearly double the distance travelled for homes in the private rented sector as a whole (3 miles) and 38.1% further than for new-build buy-to-let properties (4.2 miles).

The attraction of build-to-rent properties is clear, with the greatest median distance moved evident in core cities across the UK, where tenants move 8.3 miles for these homes, compared to 3.1 miles for properties in the general private rented sector - a massive 167.74% further.

Mini infographic with the text 'Across the UK, the median distance tenants move for build-to-rent properties is 5.8 miles.'

Though tenants are moving furthest for build-to-rent homes, they also move further for new-build buy-to-let properties than for the private rented sector at large. Interested in becoming a landlord? Explore buy-to-let mortgage deals.

FAQs

Can build-to-rent properties be sold?

No, build-to-rent homes cannot be sold, as they must remain available for rent. When a tenancy ends, the property remains under the control of a landlord or management company.

What is a deposit protection scheme?

Since 2007, landlords have been legally required to secure their tenants’ deposits in a government-backed deposit protection scheme (DPS).

These schemes ensure that tenants receive their deposit back at the end of their tenancy, provided they have paid their rent, have not damaged the property, and have met the conditions of their tenancy agreement.