Low consumer confidence, uncertainty in the sales market, and rising monthly mortgage payments as well as an end to the Help to Buy scheme will deter first time buyers. This is likely to create more demand for the private rented sector.
We expect Build to Rent to play a bigger role in new homes delivery offering potential exit routes in a slower sales market.
We take a deep dive into Waltham Forest, a great example of how Build to Rent can step in and provide a greater choice of high-quality accommodation to the rapidly growing renter population.
Additionally, you'll find data on new home deliveries, rental performance, investment volumes, and European city yields inside the report.
Key headlines include:
- Historically, on a monthly basis, it has been cheaper to be a homeowner than a renter. This reversed towards the end of 2022;
- Average monthly mortgage payments in December 2022 were £1,297, compared with an average monthly rent of £1,174;
- The balance between capital and interest has shifted, creating a less attractive offer for first time buyers;
- Help to Buy has accounted for 47% of all new home sales since April 2013. Without Help to Buy supporting the sales and purchases of new homes, there is a question about what will happen to new home delivery;
- Build to Rent has played a more important role in the delivery of new homes. In London, Build to Rent construction starts increased by 30% in 2022.