Build To Rent won’t solve shortage of lettings prop...

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09 February 2023

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By Graham Norwood

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Build To Rent won’t solve shortage of lettings properties - RICS

One of the property industry’s most respected bodies says Build To Rent won’t solve the lettings supply shortfall.

The claim comes in the latest monthly market snapshot provided by RICS.

It says that the rental market continues to show strong interest from tenants and limited stock available which is “keeping a firm momentum” to rental growth.

And the snapshot report adds: “While Build to Rent clearly has a role to play in helping to fill this gap, the insights from the latest survey suggest that this is not going to be sufficient, at least in the near term, to address the challenge in this market.”

In detail the surveyors contributing to the report say: “Around 64 per cent of survey participants are of the opinion that Build to Rent will play a bigger role in the product mix brought to market going forward.

“That said, the largest share of respondents (48 per cent) perceive that Build to Rent will only be somewhat successful in filling the supply shortfall in the market longer term, while 44 per cent feel it will have very little impact.

“Crucially, only nine per cent of respondents envisage Build to Rent filling the shortfall in supply across the lettings market to a significant extent.”

On the sales side, new buyer demand, sales, fresh listings, and prices are all reported to be on a downward trend.

Respondents to the survey in all parts of the UK saw either a fall in demand or a stagnant trend over this latest survey period.

Alongside this, respondents continue to see a pull-back in the volume of fresh listings coming onto the sales market.

All regions of England are seeing house prices retreat with the sharpest declines coming across the East Midlands and the South East.

However there is a glimmer of light when the report adds “looking at the next 12 months, the sales outlook does not appear to be quite as downcast as before.”

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