UK Build-to-Rent Marketbeat Reports

KEY TAKEAWAYS FOR Q3 2024

• Slowing Rental Growth: UK rents (excluding London) increased by 5.9% year-on-year to September 2024, down from 9.3% last year, while London rents rose by only 1%, down from 12%.
• Affordability Shift: Renting has become more affordable than buying, with renters spending 32.6% of income on rent versus 36.4% on mortgage payments.
• Supply-Demand Imbalance: Rental demand decreased by 35% year-on-year, and available homes increased by 13%, though supply remains 27% below pre-pandemic levels. Policy changes have led to private landlords exiting the market.
• New Home Construction: New home construction dropped by 20% from last year due to economic challenges, but lower borrowing and construction costs are expected to boost Build-to-Rent (BTR) supply.
• Investment Activity: Despite muted Q3 investment activity, year-to-date volumes reached £2.9 billion, surpassing last year. A positive economic outlook and government support are expected to sustain strong investor appetite.