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Private Residential Rental Market Report - UK 2016-2020 Analysis

This is the first edition of AMA Research's report on the UK private residential rental (PRS), or build-to-rent market. The report should be of particular interest to construction companies, investors, material suppliers, housing associations, local authorities, developers, operators, investors and other key stakeholders operating in the PRS market. This market has grown rapidly over the last decade and prospects remain strong, driven by a reduced ability to purchase due to high house prices, supply shortages, planning constraints, deposit requirements etc.

Key content covered:

  • Market Overview - the PRS sector and 'Build-to-Rent' market in the UK, review of stock by type and age, demand, value and ownership as well as future growth prospects.
  • Market drivers - construction output, development pipeline, housing policy and government support, sources of funding, housing affordability etc.
  • Key market sectors - market mix - small scale PRS landlords, institutional investors, developers, housing associations and PBSAs.
  • Supply chain and key stakeholders - procurement routes, key investment vehicles, contractors/housebuilders, consultants, FM providers etc. in the private rented sector, and leading players in the 'Build-to-Rent' sector.
Key areas of insight include:
  • Regional analysis of the UK PRS - whilst the focus has been on London and the South East, there are also significant regional PRS markets developing in Manchester, Leeds, Liverpool, Birmingham and Bristol. Analysis of the UK/London PRS development pipelines.
  • Value and ownership of the UK PRS – growth of institutional and large corporate investors - expected to treble their investment in the sector over the next 5 years – also housing associations, LA’s and student housing operators becoming more active.
  • Government support for PRS - Build-to-Rent Fund and availability of cheap finance through government backed bonds under the Private Rented Sector Guarantee Scheme.
  • Sources of PRS funding - Government-backed funds, pension funds, private equity, bank funding – Govt. support schemes.
  • Analysis of the ‘Build-to-Rent’ market - delivery of new build, large-scale, professionally-managed residential accommodation specifically for rent and increasingly financed by institutional investors.
  • PRS development pipelines of leading investors, developers, housing associations and PBSA operators in the market – growing and diverse range of activity – review of new and key players.
  • Future growth of the PRS - the market is expected to grow significantly by 2025 when around 7m households could be renting privately.
Key areas of coverage in the report include:

PRIVATE RESIDENTIAL RENTAL MARKET IN THE UK
  • Overview of the PRS (Private Residential Sector) and ‘Build-to-Rent’ market in the UK.
  • Overall size of the PRS - rental demand and future growth – growth in stock 2014-2025.
  • Analysis of PRS stock by property type and age.
  • Regional Analysis of the PRS – UK residential rental market by region. Detailed analysis of the growing PRS markets in Manchester, Birmingham, Leeds, Liverpool and Bristol.
  • London PRS Market – levels of PRS in major boroughs.
  • Value and ownership of the UK and Regional PRS markets – key urban centres for PRS.
  • Construction output in the UK Residential Sector. Private residential construction and RMI output.
  • PRS Development Pipeline – Regional and London Pipelines (schemes under construction and in planning) – major cities, projects, players.
PRS - KEY ISSUES & MARKET DRIVERS
  • Housing Supply – House-building targets, UK housing starts and completions.
  • Government Housing Policy – Housing and Planning Bill, 2015 Spending Review, 2016 Budget.
  • Overview of UK Housing Zones and their use in the PRS.
  • Housing Affordability – House prices and affordability, PRS rental growth vs. housing price growth, mortgage availability, impact of tax changes affecting buy-to-let mortgages. Planning Issues and Land Availability – changes to Permitted Development Rights, use of public sector land for PRS schemes.
  • Government Support for PRS – Build-to-Rent Fund, Private Rented Sector Housing Guarantee Scheme, Affordable Homes Guarantee Programme, Private Rented Sector Taskforce.
  • Sources of Funding in the PRS – Public and private sector sources of finance including Government-backed funds, pension funds, private equity, bank funding.
PRS - KEY END USE SECTORS
  • Ownership of the UK PRS – virtually doubled by volume in the last decade, market mix.
  • Small-scale PRS landlords.
  • Leading institutional investors/developers in the PRS – key profiles and PRS development pipelines in Build to Rent sector.
  • Housing Associations in the PRS – key players, profiles and PRS development pipelines – schemes, volumes etc.
  • PBSA/Student Accommodation Operators in the PRS – key players, shares, profiles and PBSA development pipelines.
KEY STAKEHOLDERS & SUPPLY CHAIN IN THE PRS
  • Procurement in the PRS.
  • Key house-builders, contractors, consultants, FM companies in the private rented sector – PRS activities and development pipelines.
  • Build to Rent – leading/new players – Delancey/Qatari Diar, Moda Living, Grainger, Legal & General/PGGM, Essential Living, Greystar etc.


Companies Mentioned

APG, Berkeley Homes, Bouygues, Bovis Homes, Brookfield Multiplex, Caddick Developments, Carillion, Countryside Properties, Crest Nicholson, Criterion Capital, Delancey, Essential Living, Fizzy Living, Generate Land, Grainger, Greystar, Henry Construction, Hermes, Invesco, Keepmoat, Kier, Laing O’Rourke, Legal & General, Lend Lease, Linden Homes, M&G Real Estate, Moda Living, Mulbury, Qatari Diar, Skanska, Silver Arrow, Thames Valley Housing Association, Touchstone, Willmott Dixon.

  • INTRODUCTION
  • SUMMARY AND FUTURE PROSPECTS
  • ECONOMIC ENVIRONMENT
    • GDP
      • Table GDP Data - 2012-2015 - Key Constituent Elements
    • Inflation & Interest Rates
    • Unemployment
    • Household Consumption
    • Housing & Construction
    • Population Profile
    • Conclusions
  • PRIVATE RESIDENTIAL RENTAL MARKET IN THE UK
    • Market Scope and Definitions
      • Overview of the UK Private Residential Rented Sector (PRS)
    • Market Size
      • Overall Size of Residential Rental Market
        • Table Dwelling Stock in England by Tenure: 2004-05 to 2014-15 (`000 Dwellings)
      • Future Growth of the UK Residential Rental Market
      • Analysis of PRS Stock by Property Type and Age
    • Regional Analysis of UK Residential Rental Market
      • UK Residential Rental Market by Region
        • Table Regional Concentration of PRS Stock by City
        • Table Top Regional PRS Markets (Population/Housing Tenure/House Prices and PRS Rents)
      • London Residential Rental Market
        • Table London - Concentration of PRS Stock by Borough
    • Value and Ownership of UK Residential Rental Market
      • Overall Value of UK Private Residential Rental Market
    • Construction Output in the Residential Rental Market
      • Total Construction Output to 2020
      • Construction Output in the Residential Sector
        • Table Value of Total Residential Construction Output 2011-2020 (Public and Private) (New Build and RMI) by Value (£bn at Current Prices)
        • Table Private Residential Construction Output 2011-2020 (New Build and RMI) by Value (£m at Current Prices)
      • Private Rented Sector Development Pipeline
        • Table Regional PRS/Build to Rent Pipeline Schemes - Scheme Details Developers, Dwelling Volumes
        • Table Inner/Outer London PRS/Build to Rent Pipeline Schemes - Details, Developers, Dwelling Volumes
  • PRS - KEY ISSUES AND MARKET DRIVERS
    • Housing Supply
      • UK House-Building Targets
      • UK Housing Starts and Completions
      • Housing and Planning Bill
      • Housing Zones
        • Table Housing Zones in the UK by Region - Est. No. of Homes, Funding
        • Table London Housing Zones by Borough - Est. No. of Homes by Zone
    • Housing Affordability
      • House Prices and Affordability
        • Table Affordability Factors - Simple Average Price, Mortgage Advance and Income (£m) 2005 – 2015
      • Mortgage Availability
    • Government Support for PRS
      • Overview
      • Government Support and Funding for PRS
        • Table Build to Rent Fund - Contracts Signed under Rounds 1 & 2 Provider, No. of PRS Homes, Funding
    • Sources of Funding in the PRS Market
      • Public Sector PRS Funding
    • Planning Issues and Land Availability
      • Planning
      • Land Availability
  • PRS - KEY END USE SECTORS
    • Market Mix
      • Ownership of the Private Residential Rental Market
    • Small-scale PRS Landlords
    • Institutional Investors/Developers
      • Leading Institutional Investors in the PRS
        • Table Leading Investors/Developers/Operators in the PRS/Build-to-Rent Sector - Estimated Investment, Key Schemes, PRS Units in Development Pipelines
    • Housing Associations
      • Table Leading Housing Associations in the PRS/Build-to-Rent Sector Key Players, Investments, Schemes, PRS Units in Pipeline
      • Housing Association Profiles
    • PBSA Sector/Student Housing
      • Size of the PBSA Market
      • Leading Commercial Operators in the PBSA Market
        • Table Market Shares of Leading Commercial PBSA Operators 2015-16 - No. of Beds, Development Pipelines
  • PRS - KEY STAKEHOLDERS/SUPPLY CHAIN OPERATORS
    • Overview
      • Procurement in the PRS
    • House-Builders
    • Contractors and Consultants
    • FM Companies

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