Agent reveals his answer to the private rental stock shortage

The drastic shortage of rental properties will lessen during 2023 according to the Leaders Romans Group - and much of that will one down to the spread of Build To Rent.

The agency backs Zoopla’s assertion that demand for rental property is now at its highest level in over a decade, worsened by a supply shortage - the number of homes available to rent is 38 per cent below the five-year average, while rental enquiries 46 per cent above average.

Now Andy Jones - group director of corporate lettings and Build To Rent at LRG - says: “BTR suburban communities provide desirable rental properties in attractive, well-serviced communities, offering growing families considerable flexibility and a wide range of options for a stress-free lifestyle.

“This new format allows an individual or family to occupy a house which can be made their own - but could be swapped for another as their needs change, with each move being free from the complications of buying and selling. 

“Typically a BTR suburban community offers 24/7 security, all-inclusive bills, extensive facilities and a range of additional services such as cleaning, gardening and even dog-walking. Some are powered by district heating systems, using clean, renewable energy. This is undoubtedly the division of the property sector in which we will see the greatest growth over the next decade.”

Jones says the current pipeline of BTR properties at planning and construction stage is “excellent news” because it has “potential to address the shortage of properties available and will significantly increase the choice available in the rental market.”

Research by the British Property Federation shows the number of BTR units in the UK will rise from 76,800 to over 380,000 in the next decade, with the majority being outside the major cities. Furthermore, the English Housing Survey states that the number of households renting privately has increased by 93 per cent in the last 15 years, while the number of owner-occupied households has grown by just three per cent.

LRG claims that the increased number renting is not solely linked to mortgage rates or the economy, but is part of a longer term trend which also responds to the preference among younger generations for a more flexible approach to homeownership. 

The English Housing Survey shows that the numbers of renting households with dependent children has doubled since 2003/4, making up 30 per cent of the sector and the number of ‘comfortable renters’ is expanding too, with this demographic representing 44 per cent of the rental sector.

The BPF analysis showa a 15 per cent increase in the BTR homes either in planning, under construction or completed between Q3 2021 and Q3 2022, from 209,313 to 240,202.