The development of new homes build-to-rent (BTR) is set to provide a boom for construction companies.
The last quarterly report by the British Property Federation found there are now 212,177 build-to-rent homes in the UK. This comprises 70,785 completed units plus 42,119 under construction and another 99,273 in the planning pipeline.
Glenigan’s construction industry research has identified many of these BTR schemes moving through the development cycle, which will provide a host of opportunities.
In London, there were 15,299 BTR units under construction according to the BPF. Major BTR schemes identified by Glenigan include the £500 million Smugglers Way scheme being developed by Legal & General across two sites in Wandsworth.
The construction work is being carried out by McAleer & Rushe and will provide more than 1,000 homes (Project ID: 15342535) and (Project ID: 16312834). This scheme started on site last Autumn and many more BTR schemes are in the pipeline.
The BPF identified 40,544 BTR units in planning, which is a rise of 11% on the same period a year earlier.
Major BTR schemes identified by Glenigan’s construction market analysis for London include 251 BTR flats proposed for a site at Deptford, south London, which developers Quadreal and RealStar have recruited Lendlease to deliver (Project ID: 19419261).
The scheme is at the pre-planning stage but Glenigan’s research suggests that construction will begin next spring.
RealStar, which operates its BTR schemes under the brand UNCLE, now has 12 BTR developments and is working with housebuilder Redrow to deliver more than 500 homes in Colindale and Southall.
The Colindale deal comprises 347 homes and has a gross development value of £119.5 million (Project ID: 19443567), while the Southall scheme will deliver 186 BTR units and is valued at £82.7 million.
In the regions, the BTR boom is gaining pace. Outside London, there are 26,820 units under construction, which is up 27% on a year earlier according to the BPF. Another 58,729 units are also in the planning pipeline.
Examples identified by Glenigan include the delivery of 500 BTR units on the North Bank of the giant Wirral Waters residential scheme. Regeneration developers Peel L&P has just signed a deal with Pension Insurance Capital to fund this element of the development (Project ID: 18193551).
James Whitaker, executive director of Development at Peel L&P, said: “This project is a great example of partnership working that will not only deliver this development but will act as a model for other schemes in the future.”
Elsewhere, McLaren Living has submitted a planning application to build an £85 million BTR development providing 375 apartments in the South Bank Regeneration area of Leeds (Project ID: 22034427).
McLaren Living managing director Matthew Biddle said: “We are committed to Leeds, it is a well-connected city, with fantastic retail, leisure amenity and a growing reputation as an attractive headquarters location, resulting in huge potential for investment and growth.
“We’re currently bringing forward two build-to-rent schemes in the city, with our well-located rented accommodation expected to receive strong resident demand.”
A host of other BTR schemes have also been identified by Glenigan, which will boost the construction industry’s post-pandemic prospects.
