The percentage of households in privately rented accommodation in the UK has increased from 13% to 20% over the past decade according to ONS data, while the percentage of owner-occupiers has declined. More accommodation is needed to meet the demand for homes to rent.
CBRE has tracked over £10bn in investment into the UK’s multifamily or BTR sector over the past five years. The latest figures from BPF indicate that investment into the sector has helped deliver over 40,000 BTR homes, properties designed specifically for renters, which are owned and operated by a professional landlord. A further 110,000 BTR homes are under construction or in planning stages. Multifamily developments typically have an on-site manager and offer other amenities and services for tenants.
Around half of BTR homes are in London, but with regional towns and cities also attracting substantial investment, this balance could change, and a range of locations are set to benefit from the multifamily boom.
CBRE has identified 20 towns and cities across the UK that will potentially see the highest demand for private rented accommodation over the next 10 years, and therefore where there will also be more demand for multifamily developments.