London and Manchester Named UK’s Build to Rent Capitals, New Research Reveals

Centre for Cities highlights Build to Rent’s growing role in tackling Britain’s housing shortage

London and Manchester have been identified as the UK’s leading Build to Rent (BtR) hubs, according to new analysis from Centre for Cities. The research shows the rapid rise of the BtR sector, which has grown from fewer than 1,000 new homes a year in 2004 to just under 90,000 homes delivered in large cities in 2024 – accounting for 14 per cent of all new homes built.

The findings confirm that Build to Rent is making an increasingly important contribution to addressing the housing shortage in the UK’s major cities. London leads the market with 44 per cent of all BtR stock, followed by Manchester (17 per cent) and Birmingham (8 per cent).

Although BtR still represents a relatively small proportion of the national housing market, its role is expanding, particularly in urban centres where delivering new homes has historically proved difficult. In many cities outside London, more than half of BtR homes are in central areas and nearby neighbourhoods, though analysts suggest BtR could also play a bigger role in suburban locations near transport hubs.

Policy Recommendations to Unlock BtR’s Potential

To help the Government achieve its target of building 1.5 million new homes, Centre for Cities recommends:

• Revising minimum space standards to allow more single-person and studio flats, which are in high demand but restricted under current regulations.
• Encouraging local policymakers to support BtR development around suburban transport hubs and to balance residential and commercial uses in city centres.

The report was launched at the UK’s Real Estate and Infrastructure Investment Forum in Leeds, in partnership with DAC Beachcroft.

Expert Commentary

Andrew Carter, Chief Executive of Centre for Cities, said:

“The Build to Rent sector has emerged as a powerful new tool for delivering private sector homes in Britain’s biggest cities – something the UK has struggled with since the Second World War. With a backlog of 4.3 million missing homes, BtR is helping to fill the gap and has the potential to do much more. Cities that want to attract BtR investment must also strengthen their urban living offer to appeal to those who want to live in, as well as build, these homes.”

Gemma Leonard, Head of Development at DAC Beachcroft, added:

“BtR’s growth over the past two decades has been remarkable, now accounting for 14 per cent of housing growth in the UK’s largest cities. Young professionals remain the main tenants, but as the sector matures, we expect increasing demand for family-friendly Build to Rent homes. Professionally managed rental housing is delivering a positive experience for tenants and has a vital role to play in the future of the UK housing market.”