The report analyses the different rental products we expect to be delivered to meet the growing demand in the private rented sector.
- A minimum of 4 million extra homes need to be delivered by 2040, with the Private Rented Sector forecast to grow by 43%, equating to an additional 2 billion sq ft.
- Demand is expected to be met through institutional investment, with amenity lite BTR products at the top of investors’ agendas, followed by amenity led BTR products and Single-Family Housing.
- Amenity lite BTR is the top choice, with perks such as a wider tenant demand pool, the UK’s stretched affordability, higher retention rates, as well as helping address the viability constraints the market faces today.
- Amenity led BTR products will continue in their success, given strong rental premiums, untapped high earners, the ‘amenities arms race’ witnessed in the US, and the link between amenities and resident experiences.
- The strong investment momentum in Single Family Housing is projected to continue due to the substantial size of the suburban renter population, first-time buyer struggles, the high proportion of families and ‘older’ renters, operational efficiencies, and delivery advantages.
