The number of build-to-rent homes under construction in the capital has shown zero growth over a year, as investors opt for regional cities over the capital.
New figures from the British Property Federation and Savills reveal 16,822 BTR builds in progress in London, a change of 0% in a year.
This compares to an 11% increase in the regions, as developers get on-site after inking investment deals. Yorkshire & The Humber, the South East, the Midlands and Scotland all saw boosts in construction activity.
The BPF anticipates continued “subdued” growth in London, with the number of homes in planning rising by just 2%, against a 42% hike across the regions.
Ian Fletcher, director of real estate policy at the British Property Federation, said: “The quantum of planning applications in London… is static, suggesting that the capital is having to compete for investment.”
A surge of completions in London in the final quarter saw BTR make up a fifth of all new-builds, compared to an average of 4% across the UK.
Across the UK in all stages of development, the sector saw a 19% uptick, rising to 179,835 rental homes.
Fletcher added: “There remains a significant opportunity for the sector to increase its share of completions in our regional cities and towns, further supporting local housing supply ambitions.”
Investment into BTR surged by 30% to £3.5bn last year, according to CBRE. In London, transactions focused on trading existing stock, with an £800m deal from AXA IM to acquire Dolphin Square and QuadReal’s £570m acquisition of Realstar’s 1,335-flat portfolio largely weighted to the capital.