Build to Rent allowing for growth in housing stock across the UK
The UK’s need for more homes to house those who want to either rent or buy their own properties has never been more acute than it is at present. However, according to new data, this appears to be heading in the right direction, with new schemes for increasing housing numbers having allowed the market to build more than in recent times.
One of the major pushes in the last few years has been towards the Build to Rent sector, which finally found its feet last year when large investors started to throw their weight behind purpose built private rented stock. And it seems that this has had at least some impact on stock levels across the nation, if results for the first three months of the year are anything to go by.
A rise in new build properties in 2017
According to the latest National House Building Council (NHBC) data, there were some 42,470 new homes registered across the UK in the first three months of the year, both in the private sector and affordable housing.
This is a significant three-month period for the property market, because it marks real growth across the sector. When compared to last year at the same time, there has been a rise of some 17 per cent in housing finishes. Quarter one of 2017 also marks the highest January to March reading of new home numbers for ten years, since the market last peaked pre-recession.
When the figures are examined closer, it can be seen that some 31,197 of the newly registered properties were in the private housing sector, which marked a rise of around ten per cent when compared to the same period a year ago. Meanwhile, in the affordable housing sector, there were more than 11,000 homes registered, which represents a rise of around 40 per cent over a year ago.
The NHBC said this is a strong indicator of what is still to come in the property sector over the next few years. And with the likes of the Build to Rent sector being committed to long-term growth in terms of numbers of properties, it seems a promising start to a new era in the private rented sector.
Demand for new properties in the rental sector remains largely consistent nationwide, and is likely to do so for some time, with a drop in the number of homes owned across the UK having been consistent for a number of years. This means that there is real scope for Build to Rent to continue its ascent and help address short supply issues.
“These figures, with growth across the entire country, are clearly encouraging for the sector, at a time when there is considerable demand for new, high quality homes,” said NHBC managing director Neil Jefferson.
“This growth in registrations, in both the private and affordable sector, is welcome news and will result in more newly built homes across the UK over the coming months,” he went on to say.
Investors remain positive about UK BTL
Despite recent tax changes to mortgage relief and an increase on Stamp Duty tax, a new study has shown that investors have not been deterred.
Data from property lender, Kuflink shows that the recent uncertainty in the market have not had much of a negative impact on the overall market.
Rising rental yields, steady property prices and a high demand for new homes have helped emphasise the resilience and potential scope of growth in the market.
According to Kuflink, the Northern Powerhouse continues to generate the best yields.
And with more and more companies directing their attention to the area’s Build to Rent market, it looks like the likes of Manchester, Leeds and Liverpool will remain in the spotlight for many years to come.