A new report suggests that institutional investment in the burgeoning Build To Rent sector could see the creation of 240,000 new homes by 2030.
The report, by the British Property Federation and Savills in conjunction with the London School of Economics, says that on key urban sites which are well-connected to employment markets, BTR can accelerate housebuilding three-fold.
The report suggests that if this can be achieved on, for example, 20 per cent of the large sites that are currently being built out, that equates to additional delivery of six per cent.
Relative to the 164,000 new homes completed in England in 2015/16, this would mean around an additional 10,000 homes per annum.
Together with the level of supply expected to be completed over the next three years, this would equate to circa 15,000 units.
This in total would result in a total of 240,000 homes being built by 2030.
The report says better recognition of BTR in the planning system would aid this ambitious delivery programme.
“The sector is therefore seeking a greater codification of the government's preferred planning approach to the sector in the Housing White Paper, with a statutory planning definition of what BTR is, an acceptance that discounted market rent may work better than other forms of affordable housing on such developments, and the use of covenants and clawbacks to give local authorities the assurances they need that such homes will remain in quality rental” says the BPF.
“By measuring BTR’s growth and the other benefits it delivers, and what gets in its way, we want to show to government the sector can be an important partner to its ambitions to build more homes” says Ian Fletcher, BTR director of policy.