There are just over 148,000 Build to Rent homes across the UK, 34,840 of which are now complete, equal to 24%. London continues to lead the way, accounting for 51% of all completed stock, with Manchester the next closest city at 18%.

Across the country, the entire Build to Rent sector has grown by 20% since Q3 2018. In real terms, this amounts to over 25,000 additional Build to Rent homes in the past year.

The average size of schemes has also grown and a completed scheme now averages 133 Build to Rent homes. Of the 262 completed schemes across the UK, 108 fall within the 100 – 250 home category. This area of the market is continuing to grow, with a further 150 schemes within this size band currently in planning or under construction.

The average size of a completed scheme will continue to grow significantly, as the average scheme under construction is now 245 units and those in planning average 325 units.

Eight schemes started construction in the third quarter of 2019, totalling 1,400 units.

Investment remains strong in the core cities of Manchester, Birmingham and Leeds, although opportunities are increasingly being recognised in smaller urban centres with strong fundamentals.

Grainger’s Market Street in Newbury and LaSalle’s Milburngate in Durham are two such examples and are the first Build to Rent developments in each location.

As institutions have become more confident in Build to Rent as a long-term asset the number of units being delivered at any one time has grown. There are now 35,760 units under construction.

Half of the pipeline is controlled by just ten developers, each bringing forward over 1,200 units.

The remaining half of the construction pipeline is split amongst circa. 60 developers with many operating in their local markets only. Of these developers, 84% are only bringing forward a single scheme though these range from circa. 25 to 700 units.

In the year to Q3 2019, the number of homes in planning increased by 26% in London and 20% in the regions. There are now over 77,000 units at various stages along the planning process, with 40,000 of these in the capital.

Sigma Capital have ramped up activity this quarter, acquiring two sites in East London, their first ventures into the capital. This comes after their recent launch in Scotland where, alongside Springfield Properties, they are targeting the delivery of hundreds of private rented homes across Scotland’s major cities.

Grainger have also been active this quarter, buying or funding schemes in Leeds, Sheffield and Canning Town.