The UK’s housing market has been going through some tough times, but there’s one sector that’s not just surviving, but thriving – the Single Family Housing Build to Rent (SFH BTR) sector. Let’s dive into why this part of the housing market is outshining the rest, even in these challenging times.

Paul Staley, the managing director of Wise Living, has some interesting insights about the SFH BTR sector. Despite the many hurdles the residential housing market faced in 2023, SFH BTR didn’t just manage to stay afloat; it actually outperformed many other sectors. But what does this really mean?

Impressive Growth and Stability

The properties managed under this sector not only met but exceeded investor expectations. They’ve seen a remarkable double-digit rental growth, hitting an impressive 10.1%. Even more striking, the occupancy rates have remained stable at a whopping 98.69%. That means almost every single property is filled!

Lowering Debts

Another piece of good news is the decrease in bad debts, which have fallen to less than 0.1%. In simpler terms, this means the sector is not just making more money but also losing less.

Build to Rent: A Growing Force in the Housing Market

A report from Savills, a renowned real estate service provider, highlights the increasing significance of the build to rent sector. This part of the market is expected to play an even more critical role moving forward.

The Numbers Tell the Story

The latest figures from Savills for the third quarter of 2023 show a year-on-year increase of 11% in completed BTR homes. That’s 112,511 more homes in the pipeline! Within this, SFH is a standout area of growth, contributing 28,000 of these pipeline homes.

What’s Next for SFH BTR?

Paul Staley remains optimistic and excited about the prospects of SFH BTR and the wider residential sector. But he’s also realistic, acknowledging the need for caution as we head into 2024. With geopolitical tensions rising and a UK general election on the horizon, it’s a time of uncertainty. However, Staley expresses confidence in the sector’s ability to tackle the challenges of 2024 and anticipates another successful year.