UK build-to-rent sector preparing for significant expansion in 2025

The confidence of investors across the globe is continuing to grow, as borrowing costs decrease and the UK housing market moves from strength to strength. The build-to-rent sector recorded a stellar 2024, with great things expected to come in the next 12 months.

The rental sector is continuing to experience sky-high levels of demand from tenants, with more and more people continuing to rent for longer than ever before as housing supplies struggle to keep up with the demand for living space.

Recent figures from HM Land Registry report rental prices across the UK grew by 8.7% in 2024, with landlord yields averaging a 6.93% according to figures reported in December.

The rise and growth of the build-to-rent sector has been on the up for several years, but research from Savills shows that the growth in the past year was a record-breaking 12 months for the market, with investment hitting the £5 billion mark. Developers and housebuilders alike are more invested than ever in breaking into the sector, with some businesses even restructuring to include the build-to-rent sector, feeding into a major delivery boost.

Manchester: the heart of build-to-rent

With over 19,000 build-to-rent homes being delivered across the Greater Manchester area in the last decade, a wider range of investors have become involved with the city, further expanding the build-to-rent sector to a larger pool of residents at a lower price point.

The build-to-rent sector has also been a key part of the regeneration in recent years in Manchester, where developments are often built on brownfield land, where plans are focused on creating new neighbourhoods and feed into the community, further boosting the appeal of these areas for both investors and renters alike.

If you’d like to learn more about the build-to-rent sector, reach out to our expert property consultants today.