Build-to-Rent Alliance formed against backdrop of stalling BTR growth across the UK

Latest News Wed, Jul 16, 2025 6:30 AM

The formation of the Build to Rent Alliance comes at a time when the latest figures show Build to Rent (BTR) delivery slowing across every region of the UK, amid growing evidence that policy and regulatory issues are making it increasingly challenging to progress new schemes, and risk undermining investor confidence.

As well as uniting the two major sector representative bodies in the British Property Federation (BPF) and Association for Rental Living (ARL), the Alliance seeks to bring together a representative group of those with an interest in the continuing success of BTR as a highly investable asset class, optimum delivery model for new homes, and the rental destination of choice for consumers.

The Alliance’s initial focus will be two-fold: advocating for the policy and regulatory changes needed to improve investor confidence, and tackle current viability and delivery challenges; and improving the consumer experience and perception of BTR both within the wider private rented sector, as a housing tenure of first choice. This will be achieved through the adoption of a new Consumer Code.

The formation comes as the latest analysis from the British Property Federation and Savills shows that completions for new BTR developments continue to outpace start-on-sites for the sixth consecutive quarter and the number of new schemes in planning have dropped 18% since Q1. This brings the pipeline of new homes in planning on a year-to-date basis to a disappointingly low 5,000.

On a more detailed basis, the figures show that while London has experienced a 16% growth in schemes in planning, there has been zero growth across the regions. This provides further evidence that recent planning reforms have so far had little impact when offset against significant viability challenges, with only high value land areas like London being able to absorb some of the additional costs and delays.

The Q2 figures also demonstrate the impact that delays at the Building Safety Regulator (BSR) are starting to have on BTR delivery across England, further depressing the number of schemes able to progress to commencing start-on-site. This, along with other viability challenges is starting to have a mild chilling effect on investment sentiment in the sector, once viewed as offering a transformative impact on accelerating housing delivery.

As a result, a key part of the Alliance’ remit is to continue to raise awareness in local authorities of the benefits of BTR and create a more accommodating environment for new schemes to come forward.

Melanie Leech, Chief Executive, British Property Federation commented: “The formation of the BTR Alliance comes at a critical time for the Build to Rent sector. Build to Rent has been the major success story of housing delivery over the last decade but is under increasing pressure from a combination of economic and policy factors. This is now the sixth consecutive quarter where completions have outpaced starts and the number of schemes in planning has fallen. It is now clear that planning reform is not enough, and we need to see real action to address viability challenges and allow the sector to reach its full potential. A key focus of the Alliance will be to elevate awareness of the importance of the sector with policymakers and ensure that policy and regulatory conditions facilitate delivery of much-needed Build to Rent home.”

Brendan Geraghty, Chief Executive, The Association of Rental Living commented: “The creation of the new Alliance comes at a pivotal time for the Build to Rent sector. Against a backdrop of increased delivery challenges the need to speak with one sector voice has never been more paramount. But nor has the need to ensure that the benefits of BTR are conveyed far and wide, including how it can act as a catalyst for town centre renewal and support a growing economy. Nor should we forget about our most importance audience, the very people who choose to live in BTR. It is for that reason a central pillar of the Alliance’s work will to establish and promote a new Consumer Code to continue to make BTR for first housing choice for many.”

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