According to research from the British Property Federation, in collaboration with Savills, the total number of completed BTR properties now stands at 115,778, surpassing 100,000 in the first quarter.

the study stated that BTR completions are now running at over 2.5x the average recorded from 2017 to 2019.

The sector’s health looks even better when homes under construction, or approved to begin construction, are entered into the figure.

Altogether, this represents a 4% year-on-year growth for BTR, bringing the total sector pipeline close to 262,000 new homes, just above the five-year average of total housing completions.

For context, 210,000 dwellings of all tenure types are built in the country on a five-year average.

Despite this increase in completions, there has been a contraction in the number of construction starts across the BTR sector.

In the second quarter, construction starts fell by 19%. This decline was most acute in London where construction starts fell by 21%.

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Over the 12-month period of record-breaking completions, only 11,500 construction starts were made in total. This was a reflection of ongoing challenges in the sector such as inflation and cost of debt, with investors also wary of economic and political uncertainty.

The number of consented homes rose by 17% in the second quarter, with now 57,000 homes in the planning permission pipeline.

Despite this, applications have not kept pace with consents. The number of homes at the detailed application stage is currently down 31% over the same period.

Reflecting on the findings, Ian Fletcher - director of policy at the British Property Federation - welcomed what the new Labour government could bring to the BTR sector.

“The number of BTR homes being completed is now at a record high and the sector is starting to make a demonstrable positive impact on meeting housing needs and consumer choice,” said Ian.

“This, along with the continued steady growth of the sector is testament to the strength of the product, investor appetite, and consumer demand for homes for rent.

“However, more action is needed to convert planning consents to starts on site and bring new schemes forward through the planning process. We need continued growth to service huge rental demand and look forward to working with the new government to make that happen.”