Approximately £300bn of investment in the BTR sector will be required by 2031 in order to keep up with future demand for rental properties, revealed the latest Savills data.
According to the firm’s ‘The Future of Build to Rent Houses’ report, between 800,000 and one million homes will likely be needed in the PRS in order to meet the demand for rental properties.
Of the £300bn required to meet this high rental property demand, £160bn would be needed to deliver 550,000 suburban homes, £110bn for 360,000 urban properties, and £28bn for 110,000 rural homes.
To date, UK BTR has attracted over £3.5bn of investment, nearly £1.5bn of which was deployed between January and November 2023 alone.
In addition, investors surveyed by Savills in October last year said they aim to commit over £25bn to the BTR sector over the next five to 10 years.
Some 90% of those who participated in Savills’ ‘The Future of Build to Rent Houses’ study said they are targeting portfolios of over 2,500 units, or a value of over £1bn.
