BTR sector sees strong recovery from the pandemic hit
02 Feb 2022
The build-to-rent (BTR) sector in the UK, including London, has been recovering from the pandemic-led decline in development completions, data by Sirius Property Finance reveals.
The specialists analysed the BTR market and the project completions between 2019 and 2021 to find out the pandemic impact on the sector and its further recovery.
London BTR: 2019 vs 2020 vs 2021
According to the data, developers completed 11,808 BTR projects in 2020, a 14% fall against the numbers in the prior year before the pandemic. In 2019, a similar figure stood at 13,686.
Mainly, areas outside the capital had driven the decline in 2020, with a regional performance down by 35% year-on-year (YoY). In turn, the BTR sector in London saw a 34% jump in the project completions in 2020, with the numbers reaching 5,704.
Last year, London likewise saw a boost in BTR developments: the number of completed projects climbed to 6,780, a 19% jump against 2020.
Perhaps surprisingly, the BTR market outside London has also seen a swift recovery last year. In 2021, the number of completed BTR developments jumped to 2,852, a 24% increase on 2020
Moreover, the current total figures are 7% above the pre-pandemic peaks for the BTR market in the UK in 2019.
Comments by Sirius Property Finance
Nicholas Christofi highlights the swift rate of BTR market development in recent years and its appeal for various property developers. The pandemic-led decline was expected, and we saw a strong market recovery with completion numbers exceeding the pre-pandemic levels.
The BTR sector in London remains a property hotspot for the market. Despite the residential property market in the capital lagging behind the UK during the recent heated activity, the BTR sector has shown its resilience and appeal.