This slowdown points to the ongoing challenges in the build-to-rent sector. According to the British Property Federations’ report, this includes economic and political uncertainty, build cost inflation, and high borrowing rates.
But there is improvement on the horizon. The total number of build-to-rent homes in planning is still near record levels, with 57,000 dwellings in the pipeline. The number of consented homes has also risen by 17% compared to Q1 2023, although it’s worth noting that the number of homes at the detailed application stage is currently down 31% in the same period. The number of local authorities with build-to-rent developments in the pipeline is unchanged from the previous quarter, standing at 208. However, this is anticipated to increase in the second half of 2024.
Ian Fletcher, Director of Policy, British Property Federation, said: “The number of Built-to-Rent homes being completed is now at a record high, and the sector is starting to make a demonstrable positive impact on meeting housing needs and consumer choice. This, along with the continued steady growth of the sector, is a testament to the strength of the product, investor appetite, and consumer demand for homes for rent. However, more action is needed to convert planning consents to starts on site and bring new schemes forward through the planning process. We need continued growth to service huge rental demand and look forward to working with the new government to make that happen.”