Planning reforms help boost Build to Rent developments

February 8, 2019

From Property Eye 6th February 2019

The Build to Rent (BTR) sector continues to boom, with developments outside London now catching up with the capital.

Research by the British Property Federation (BPF) and Savills found that the number of completed developments was up 29% annually at the end of the fourth quarter of 2018 to 29,416.

The number under construction was up 39% to 43,374, while 10% more are in planning at 66,718.

The analysis shows that the total number of completed BTR homes across the UK regions (14,615) has caught up with the total of 14,801 in London.

The research also found that developments have been helped by permitted development rights that allowed buildings to be converted to residential use without planning permission.

Ian Fletcher, director of real estate policy at the BPF, said: “With the revised National Planning Policy Framework asking local authorities to identify how many new rental homes their respective areas need, the future should remain bright for BTR.

“This has never before been enshrined in UK planning policy and will only add to the growing number of local authorities that are seeing the benefits in adding much-needed housing supply across the UK.”

Jacqui Daly, director of Savills residential investment research and strategy, said: “Changes to planning will make it much easier to get bespoke developments off the ground, which will match investor demand for sizeable portfolios offering long-term stable income streams.”