The Build-to-Rent (BTR) sector in the UK stands at a critical juncture, having already delivered over 130,000 homes with an additional 160,000 in the pipeline, yet it faces significant hurdles that threaten to stall progress and jeopardize ambitious housing targets. Despite this impressive growth, a pipeline does not equate to completed homes, and without swift government intervention, the ambitious target of 1.5 million new homes within this Parliament could slip out of reach, alongside billions in global investment eager to support UK housing. As Andy Jones from LRG aptly noted, the risk of missing housing goals and squandering international funding looms large unless action is taken now. The Labour Party Conference serves as a pivotal moment for the property sector to advocate for transformative change, particularly for BTR, which is often misunderstood as a niche, premium offering rather than a mainstream solution. In reality, BTR provides professionally managed housing across diverse income levels and regions, addressing the needs of the “missing middle” caught between unaffordable homeownership and inaccessible affordable options. With institutional capital ready to flow, the challenge lies in convincing policymakers to create a viable environment for this vital sector.
1. Unified Strategy Development
The Build-to-Rent sector continues to be treated as a secondary option compared to traditional homes for sale or affordable housing, with fragmented national policies and a lack of explicit strategies from most local authorities. This disjointed approach undermines the sector’s potential to contribute significantly to housing goals. A clear, unified policy statement from the government is essential, positioning BTR as a cornerstone of the 1.5 million homes target. Such a directive would signal a shift in perspective, recognizing the unique ability of BTR to deliver homes at an accelerated pace. Beyond national guidance, local authorities must be both supported and mandated to integrate specific BTR strategies into their local plans. This would ensure alignment across all levels of governance and help dismantle outdated stereotypes that portray renting as a lesser choice, paving the way for broader acceptance and implementation.
Coordination across national, regional, and local levels remains a critical missing piece in the current framework, often leaving BTR projects struggling for recognition and resources. A joined-up approach would not only streamline processes but also foster an environment where BTR is seen as a key driver of housing delivery. By embedding BTR into the core of housing policy, the government can counter misconceptions that limit its appeal and impact. This strategic alignment would enable quicker project approvals and better resource allocation, ensuring that the sector’s capacity to provide quality, managed homes is fully utilized. Additionally, it would send a strong message to investors that the UK is serious about housing innovation, encouraging more capital inflow. The time for piecemeal efforts has passed; a cohesive strategy is the foundation for turning housing aspirations into tangible results.
2. Forward-Looking Commitment
Amid fiscal constraints, a cautious, short-term mindset has taken hold, even within a Labour government traditionally inclined toward bold investment, often overlooking housing as a powerful economic catalyst. Yet, housing initiatives, particularly through BTR, offer far more than shelter; they drive productivity, enhance social mobility, and build resilient communities. The sector’s emphasis on placemaking and long-term stewardship positions it uniquely to deliver these broader societal benefits. Recognizing this, the government must shift focus from viewing housing as a cost to seeing it as an investment with substantial returns. Long-term incentives, such as releasing public land for development and funding critical infrastructure, are vital to ensure that BTR projects remain viable and profitable, addressing the growing demand for quality rental homes across the UK.
With the Renters’ Rights Bill reshaping the rental landscape, the demand for professionally managed, large-scale housing solutions is set to rise significantly, and BTR stands ready to meet this need. However, without sustained government support, this potential could remain untapped, leaving many renters without access to secure, high-quality homes. Fiscal predictability is another crucial element, as constant policy shifts deter investors and developers from committing to long-term projects. By providing a stable framework that includes clear tax and funding mechanisms, the government can create an environment where BTR thrives. This forward-looking commitment would not only accelerate housing delivery but also reinforce the sector’s role in creating a more professional rental market, aligning with broader policy goals and ensuring that housing remains a priority on the national agenda.
3. Reliability in Planning Processes
Planning delays represent one of the most severe bottlenecks for the BTR sector, with multi-family submissions having plummeted by over 75% since their peak, alongside a sharp decline in co-living projects. If this downward trajectory continues unchecked, the impact will be felt in reduced housing starts and diminished availability, extending well into 2027 and beyond. Urgent reforms are needed to reverse this trend, starting with incentives for rapid delivery on large sites through innovative partnership models and master-planned public land initiatives. Additionally, integrating BTR into development schemes at an earlier stage can unlock regeneration opportunities, benefiting both communities and developers. As a last resort, penalties for significant delays in project timelines could ensure accountability, pushing projects forward to meet critical housing needs.
The current planning timeline for most BTR projects, often exceeding 3.5 years from concept to occupation, poses a direct threat to achieving the 1.5 million homes target set by the government. Streamlining the process through targeted reforms would not only accelerate delivery but also restore confidence among stakeholders who have grown wary of bureaucratic hurdles. Early integration of BTR into planning frameworks can transform underutilized areas into vibrant, mixed-use communities, amplifying the sector’s impact. Moreover, rewarding swift progress on large-scale developments would incentivize efficiency, while penalties for delays would serve as a necessary safeguard against stagnation. Without these changes, the planning system risks becoming a barrier rather than a facilitator, jeopardizing the broader housing mission and leaving countless potential homes unrealized.
4. Accelerating Construction Progress
Even when planning approvals are secured, the BTR sector faces significant challenges in moving projects to construction, with starts declining due to soaring build costs, financing difficulties, regulatory uncertainties, and escalating development taxes. The Building Safety Act, while well-intentioned in prioritizing safety, has introduced unintended consequences, including lengthy delays, heightened compliance costs, and complex liability structures that render many high-rise projects financially unfeasible. Developers frequently report being trapped for over a year in the gateway process, unable to occupy completed buildings. This gridlock stifles progress and frustrates efforts to deliver much-needed housing, pushing the sector to a breaking point where action is no longer optional but imperative for survival.
Beyond regulatory hurdles, the expectation that land value can indefinitely cover infrastructure costs and levies has driven many BTR projects past the threshold of financial viability, often described as a “death by a thousand cuts.” This unsustainable burden is prompting investors to redirect their focus to more favorable markets abroad, diminishing the UK’s appeal. Addressing this requires a rebalancing of costs and a streamlined gateway process to ensure that the 160,000 homes in the pipeline transition from plans to reality. Such measures would alleviate immediate pressures on developers and signal to global capital that the UK remains a viable destination for housing investment. Without these adjustments, the sector risks losing momentum, leaving communities without the homes they desperately need and undermining national housing objectives.
5. Ensuring Fiscal Consistency and Predictability
Fiscal uncertainty, more than regulation itself, is paralyzing the BTR market, as investors find the unpredictability of rules and frequent policy changes far more deterring than the rules themselves. To counter this, budgets must provide multi-year clarity rather than annual surprises, while expanding clearance processes to cover VAT and Stamp Duty Land Tax (SDLT) alongside corporation tax. Progressing HMRC’s VAT guidance review to clarify rules on tenant modifications, “golden brick” recovery, and maintenance costs is equally critical. Adjusting SDLT to reflect BTR’s typical aggregation and long-term ownership model, alongside exemptions from council tax and business rates during the lease-up phase, would ease early cash flow challenges. These steps are not mere concessions but essential mechanisms to unlock nearly 4,000 consented homes currently stalled due to fiscal ambiguity.
International investors, holding billions in ready capital, have signaled growing frustration with the UK’s lack of predictability compared to more stable, regulated European markets, highlighting the urgency of fiscal reform. Implementing these measures would restore confidence and ensure that investment flows into BTR projects rather than elsewhere. Multi-year fiscal planning would provide a stable foundation for long-term commitments, while targeted tax adjustments would address specific pain points that hinder progress. The government holds the power to transform the investment landscape by prioritizing consistency over short-term tinkering, enabling the sector to deliver on its promise. Without such stability, the risk of stalled projects and lost opportunities grows, undermining the broader goal of meeting housing demand and sustaining economic growth through robust community development.
6. Paving the Path Forward
Reflecting on the journey of the Build-to-Rent sector, it is evident that despite remarkable growth with over 130,000 homes completed and 160,000 more planned, the gap between potential and reality has widened due to systemic challenges. The government has a unique window during the Labour Party Conference to demonstrate that the housing target is not mere rhetoric but a committed national mission. Supporting BTR holds the promise of delivering better rental options for millions, accelerating home construction, bolstering local economies, and ensuring sustainable community management, but progress has been hampered by inaction on critical fronts.
Looking ahead, actionable steps emerge as the clear path to success, with the five outlined measures—unified strategy, forward-looking commitment, reliable planning, accelerated construction, and fiscal consistency—standing out as both pragmatic and urgent. Future efforts should focus on streamlining these reforms to unlock the sector’s full potential, ensuring that BTR can play a transformative role in housing delivery. Collaboration between policymakers, local authorities, and investors must be prioritized to clear existing barriers. By building on past lessons, the foundation for a stronger, more responsive housing sector can be laid, meeting the needs of communities across the UK.
