The regional build-to-rent market is outpacing that of London, with twice as many new homes added in the regions than in the capital last year.

There were 16,797 BTR homes added to the pipeline in the regions, compared to 8,065 in the capital, according to new figures from the British Property Federation and Savills.

Regional BTR grew by 16% to some 122,499 homes, making up 58% of the sector. This compares to growth of just 10% in the capital, rising to 89,678 BTR homes.

In the regions, Manchester had the largest shares of BTR homes at 22,938 (19%), followed by Birmingham with 17,004 (14%) and Leeds with 10,562 (9%).

Overall, the BPF and Savills counted 212,177 BTR homes at the end of 2021, reflecting a 13% increase during the year.

Some 16,445 suburban BTR homes make up 8% of the market, as urban developments continue to dominate.

There are now 70,785 completed BTR homes, up 26% compared to a year ago. While the pace of completions in the capital has almost kept up with the regions, it has seen a drastic reduction in the number of homes under construction.

In London, there are now 15,299 homes under construction, a drop of 15% compared to a year ago. However, regional BTR has maintained momentum, rising 27% with some 26,820 homes under construction.

Last year, the BPF and Savills tracked 13,527 new BTR starts on site in the regions. This is more than three times the 4,094 BTR starts recorded in London in the same timeframe.

Ian Fletcher, director of real estate policy at the British Property Federation, said: “Build-to-rent is not just about increasing housing provision, it is a major economic driver helping attract and retain skilled workers and serving as a catalyst for urban regeneration.

“The strong growth of the BTR sector across the regions will support the government’s levelling up initiative and help revitalise town and city centres.”

Jacqui Daly, director of residential research at Savills, added: “If investors are able to find markets and stock to invest in, we expect delivery in the sector to double in size within a few years.”