Rise in PRS projects an opportunity for construction companies
Posted on 18/04/2017
Private Rental Sector (PRS) projects are on the rise across the UK, with a focus on the major cities and areas of denser population.
PRS, otherwise known as the Built to Rent sector, is one of the fastest growing housing markets, having doubled since 2001, and now accounts for approximately 16.5% of all UK households.
Whilst the PRS was once regarded as the tenure of last resort, it is now increasingly popular with young professionals, couples and families, which has led to an increase in projects of this type.
For example, Manchester has 60% more 25-29 year olds than the UK average, with young people flocking to the city due to the increase of career prospects.
This rise in population has seen PRS in the city grow by 85% over the last decade and it now accounts for 28% of all households in Manchester.
Rising inflation and a growing demand for people to spend their money on holidays and ‘experiences’ rather than a mortgage, is also fuelling the rise.
An increase in projects is seeing increased demand for companies supplying building materials and construction services.
Eamonn O’Donnell, Managing Director of SCC Design Build, comments: “We have seen increased demand for our solutions and have been more involved in PRS schemes across cities such as Manchester and Leeds, where there is high demand for housing.
“As other areas of the UK increase in population we expect to see a lot more region-specific projects. For example, in Bristol, where there is a high population of students and professionals. It was also recently voted the best place to live in the UK, making it attractive to couples and families too who will all need homes.”
SCC Design Build offers a complete design, manufacture and installation service and builds the whole pre-cast concrete solution off-site, enabling them to deliver projects to reduced timescales compared to more traditional methods of construction.
They have worked on many PRS projects across the UK including Pomona Wharf in Salford, which comprises of 150 apartments between two adjacent blocks, and Sweet Street, Leeds, a development of 750 apartments.
Eamonn comments: “The demand for new housing is at its highest level. Manchester alone now needs one new home per hour. The built-to-rent sector is worth £50bn so there are lots of opportunities for construction companies and we are well-placed to produce and supply the large volumes of pre-cast concrete solutions that are needed to fulfil the high demand for housing.”