BTR holds key to boosting rental stocks

Although investment in the build-to-rent (BTR) sector was subdued in 2023 due to economic conditions, around £2.1bn of transactions were under offer in Q3 with £3.5bn of opportunities on the market, according to consultants CBRE.

This provides a solid foundation to support investment activity this year.

By harnessing the power of property data, investors can locate the best BTR investment opportunities that match their strategy and objectives.

Four-figure rental markets

Supply of privately rented homes has been stagnant in recent years while demand has remained strong.

Analysis from the June Hometrack Rental Market Report shows that 15 households are chasing every home, double that of the pre-pandemic average.

Although the supply and demand imbalance has started to narrow it is far from closed and rents continue to rise. In the 12 months to June rents rose 6.6%.

Rising rents have driven the growth in four figure rental markets. Such markets were contained to southern England until three years ago but have now spread into other regional markets.

Analysis of Hometrack data in March revealed that in the East of England, 70% of privately rented homes have average rents of £1,000+ while a fifth of rented homes in Scotland, the North West, East Midlands and West Midlands fall in this price range. In Yorkshire and the Humber that drops to just 4%.

Accurate market insight

As BTR schemes typically command premium rents, locating the local markets within these regions that will support four figure rents is crucial for investors if schemes are to be viable.

Regional rental market insights, powered by Zoopla property data, give investors an up to date and accurate picture of supply and demand, rental prices, time taken to let and the most desirable type of homes for the location.

Armed with the right intelligence, corporate and institutional landlords can pinpoint ideal locations for BTR living, popular in city centres but also spreading out to some suburbs where Single-Family Housing is growing in favour.

Or, connect with housebuilders to buy ready-made stock to rent out.