A new way to rent

A healthy planning pipeline

London and regional BTR, including single-family housing at end of Q1 2023

A growing share

The number of homes in the institutional private rented sector has more than doubled in the past five years. Although BTR makes up just 2% of the UK’s private rental stock today, the schemes already in planning will raise that to 5% in the near future and to 10% in London. Some experts predict it could reach 40% of all rental stock. Although early investment was concentrated in the capital, the regional markets have grown at twice the rate of London in the last 12 months. Today, 66% of homes in the BTR planning pipeline are in the regions and 68.5% of those under construction. Initially the focus was on urban apartments but there is growing interest in single-family housing in more suburban locations.

Two-thirds of renters believe a sense of community is important, while pleasant neighbours matter for 87%, rating more highly than broadband speed, a parking space or garden1 .

Customer first

The Build to Rent sector has a stated ambition to transform the renter experience. Homes are purpose-built for rental and professionally managed by dedicated operators, adopting customer service values inherent in the hospitality sector. Providers actively promote community and aim to create highquality living environments where residents choose to stay for longer.

Source: Dataloft, BPF, Savills

This is reflected in the demographics. 58% of renters in BTR are couples or sharers compared to 40% in the wider private rented sector (PRS). In other ways, people who live in BTR mirror the wider renter population in age and income. The fact that more than one in five families with dependent children live in the PRS underpins the demand for single-family housing. (Census 2021).

Although eight in ten renters sign an initial lease for one year or less, more than half would welcome a longer lease and one in six (18%) would pay extra to secure a property for longer, rising to nearly one in four (23%) for families ¹. Virtually all BTR providers offer lease lengths of three years and over half (53%) of tenancies are renewed2