The supply of new Build to Rent has risen from under 1,000 new homes a year in 2004 to just under 90,000 homes in large cities in 2024 (14%), suggests a new survey by Centre for Cities.

Its analysis shows that London accounts for the largest share of BTR stock at 44% of the national total, followed by Manchester at 17% and Birmingham 8%.

BTR is still a relatively small share of total national housing stock and predominantly focused in London and other urban areas. But Centre for Cities claims that analysis suggests it could provide a larger segment of housing in big cities, which typically have been difficult to build in. 

In most cities outside of London over half of BTR stock is concentrated in city centres and adjacent neighbourhoods, though there may be a role for BTR out of the city centre where it can provide rental accommodation on sites within commuting distance, as it does in the capital.  

To use BTR more effectively to meet the government’s 1.5m new home target, Centre for Cities wants national policymakers to amend minimum space standards to address under-supply of single-person or studio flats. Data suggests there is demand, for smaller, cheaper studios but current regulations stop BTR properties from meeting this demand. 

It also says local policymakers should encourage the development of BTR units around transport hubs in the suburbs of large cities, and carefully manage competing residential and commercial uses of space in city centres so that the former doesn’t crowd out the latter 

Andrew Carter, chief executive of Centre for Cities, says: “The Build to Rent category has emerged as a new tool for building more private sector homes in our big cities – a task the UK has struggled with since the Second World War.  

“Britain has a backlog of 4.3m missing homes. Build to Rent is playing an increasing role in addressing this backlog and has the potential to do more. 

“The trend for Build to Rent additions in big cities reflects the improvements in the urban living offer that has occurred in our big cities over the last decade. Cities wanting to attract Build to Rent to their areas will need to ensure they also have a compelling urban living offer that will attract those wanting to live in these types of homes as well as build them.”