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The British Property Federation (BPF) and the Association for Rental Living (ARL) have formed an alliance to boost the struggling build-to-rent sector, arguing that planning reform alone won’t save construction.
Trying to create a “single voice” for build to rent, the alliance aims to combat investor shyness by tackling current viability and delivery challenges as well as “improving the consumer experience” of the sector.
“The need to speak with one sector voice has never been more paramount,” Brendan Geraghty, chief of the ARL said, adding that it was a “pivotal time” for build to rent.
Build-to-rent sector needs huge investment
Build-to-rent properties – which refers to purpose built, institutionally owned and professionally managed residential blocks of flats – have been touted as a crucial development in housing delivery and a possible solution to the loss of private landlords from the rented sector.
But the pipeline of new homes in planning on a year-to-date basis is just 5,000, having dropped 18 per cent since the first quarter of 2025.
“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,” Melanie Leech, chief of the BPF, said.
The sector demands huge investment: Savills has estimated it needs £300bn to meet future levels of demand.
But high interest rates, high construction and labour costs and increased regulation – largely from the Building Safety Regulator – have started to put investors off.
“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,” Leech added.
With strong interest from private equity and banking firms, build to rent also struggles with a patchy reputation: “A key part of the Alliance’ remit is to… create a more accommodating environment for new schemes to come forward,” it said.
“The need to ensure that the benefits of build to rent are conveyed far and wide [is paramount], including how it can act as a catalyst for town centre renewal and support a growing economy,” Geraghty said.
