The number of completed build-to-rent homes in the UK has increased by 13 per cent in the past year to 88,100 units, despite market conditions slowing development activity.
New analysis by the British Property Federation (BPF) shows the total number of build-to-rent homes completed, under construction or in the planning pipeline stands at 253,402.
The research, undertaken in partnership with Savills, shows single family housing continues to expand strongly with 28,000 units completed or in the pipeline, making up 12 per cent of the build-to-rent sector.
The number of homes under construction increased by nine per cent, buoyed by major housebuilders agreeing forward funding transactions with investors comprising over 2,000 homes for rent.
Meanwhile, the number of new build-to-rent homes in the design and planning phase increased 13 per cent to 111,815.
However, build cost inflation and wider economic uncertainty looks set to slowdown delivery with construction starts totalling 5,549 units in the first half of the year, down 55 per cent on the same period in 2022.
Ian Fletcher, policy director, British Property Federation, said: “Build-to-rent is continuing to expand but the sector is not immune to the current economic uncertainty and cost inflation.
“At the current time it is very challenging to deliver large-scale capital intensive schemes, particularly in London.
“But there are fewer obstacles to the delivery of smaller developments in regional cities and single-family housing both which continue to grow as a proportion of housing supply in UK cities.”