At least 1.8 million build-to-rent households needed by 2025

PUBLISHED ON Oct 5, 2016

The increasing number of households choosing to rent in the UK will see demand for purpose-built rental properties far outpace supply in the long-term.


  • An estimated 1.8 million build-to-rent properties will be needed by 2025 to meet increasing demand in the UK rental market
  • UK surveying body has called on the government to begin a building programme to focus on providing suitable accommodation for tenants
  • The build-to-rent sector is expected to be worth £50 billion by 2020

The UK is facing an incredible shortage of appropriate rental accommodation that requires an additional 1.8 million households built to meet demand.

Surveying body the Royal Institution of Chartered Surveyors (RICS) believes that the UK’s “critical rental shortage” requires a building programme to focus on providing for tenants.

Almost two million more households will be looking to rent rather than buy a home by 2025, RICS claims, with the number of UK households renting property rising from 2.3 million in 2001 to 5.4 million in 2014.

RICS has called on the government to offer tax breaks to encourage building and investment in the sector.

The report said: “RICS is urging the Prime Minister to abandon David Cameron’s previous home ownership focus and reverse April’s Stamp Duty measures in order to address short term rental supply issues.”

“However, they are recommending the Government takes a much bolder long-term approach and pioneers a new build-to-rent sector, with the private sector encouraged to build properties specifically for residential letting.

“It would like to see pension funds incentivised with tax breaks to build large scale rental properties with affordable elements. Additionally, local authorities holding brownfields sites should be encouraged to release land for such properties.”

The build-to-rent sector is expected to be worth £50 billion by 2020. The initial prediction, by global estate agent Knight Frank, stated the sector may account for 5% of the overall rental market in just four years, but the RICS report implies this figure may be much more significant.

Source: Select Property Group