16/01/2024
The UK is facing a growing rental crisis, and Savills estimates that around £250 billion of investment is needed within the next seven years to address the housing industry's challenges. The estate agency suggests that an additional one million rental homes are required by 2031 to meet the rising demand. Most of these needed homes are expected to be single-family homes rather than blocks of rental flats. While proposals to address the housing crisis often focus on increasing homes built for sale, Savills emphasizes the importance of a positive response across all tenures. The build-to-rent sector can play a crucial role in delivering more homes quickly, attracting investment, and improving energy efficiency in the private rented sector. Currently, £3.5 billion has been spent on building over 10,000 homes specifically designed for renting, but to achieve the required additional one million homes, an investment of £250 billion is estimated. Savills notes that approximately £60 billion is ready to be invested in the UK build-to-rent sector, with a preference for houses over flats. The widening gap between rental supply and demand could lead to rising rents unless there is a substantial increase in new home construction. David Reid, managing director of suburban build-to-rent at Legal & General, emphasizes the importance of delivering diverse residential offerings to accommodate the various households in the market.
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