"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"
- Melanie Leech - British Property Federation
A new build to rent (BtR) alliance has been formed as the sector grapples with declining planning activity, ongoing viability issues, and mounting regulatory pressures, all of which are starting to dampen investor appetite across the UK.
The alliance brings together key voices from the British Property Federation (BPF) and the Association for Rental Living (ARL), alongside other stakeholders invested in BtR’s continued growth as both a housing delivery model and an asset class. The group aims to provide a unified voice for the sector at a time when confidence is under threat and delivery is beginning to stall.
Initial priorities for the alliance will centre on two areas: calling for policy and regulatory changes to improve viability and boost delivery, and improving consumer perception through a new Consumer Code intended to position BtR as a preferred tenure within the private rented sector.
The launch coincides with the release of new figures from the BPF and Savills, which show that for the sixth consecutive quarter, the number of completions has exceeded new starts. The number of BtR schemes in planning has also dropped by 18% since Q1, with only 5,000 new homes entering the pipeline so far this year.
While London has recorded a 16% increase in schemes at the planning stage, regional growth has stalled entirely, according to the analysis. This disparity suggests that only higher-value land markets are absorbing the increasing costs linked to viability and regulatory constraints. Elsewhere, planning reforms introduced in recent years have so far failed to make a meaningful difference.
Further pressures stem from delays at the Building Safety Regulator (BSR), which are increasingly cited as a bottleneck preventing schemes from progressing to site. Taken together, these factors are starting to produce what some are describing as a “chilling effect” on investment in a sector that had previously been regarded as a key solution to the UK’s housing shortfall.
A core function of the alliance will be to advocate for BtR within local authorities, aiming to raise awareness of the model’s benefits and encourage a more supportive environment for new developments.
“The formation of the build to rent alliance comes at a critical time for the Build to Rent sector,” said Melanie Leech, chief executive of the British Property Federation. “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 homes.”
Brendan Geraghty, chief executive of 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 important audience, the very people who choose to live in BtR. It is for that reason a central pillar of the alliance’s work will be to establish and promote a new Consumer Code to continue to make BtR the first housing choice for many.”
