BTR homes now make up 1.8% of all privately rented properties, according to the latest research by estate agent Foxtons.
This figure rose to 4.2% in London, the largest market share seen since 2018.
The research found that in 2018, there were 31,409 BTR completions, accounting for just 0.6% of the 5.5 million privately rented homes within the lettings sector.
Since then, the BTR market has grown consistently every year.
In 2020, the number of BTR units in the rental market sat at 58,844 (1.1%).
This number has now grown to 100,372 in 2023.
In contrast, total PRS stock has increased by just 3% during the same period.
“We’ve seen phenomenal growth across BTR sector in recent years, particularly within the London market and, as a result, BTR completions now account for their highest proportion of total PRS stock,” said Sarah Tonkinson, managing director of institutional PRS and BTR at Foxtons.
“However, it’s fair to say that the sector still remains in its relative infancy, and so the potential for further growth is vast.
“With a move towards longer-term renting until later in life, tenants expect more both with respect to the quality of rental accommodation available, and the security and certainty that long tenancy agreements provide them.
With the BTR sector offering this and more, we only anticipate demand to increase and for stock levels to follow suit in order to satisfy the evolving needs of renters.”
