New research from Rangewell has uncovered a thriving “parallel market” of professional small and medium-sized developers delivering 6–25 unit Build to Rent schemes.
The property finance experts say these projects, often absent from commercial portals, are quietly transforming rental supply in areas that large developers overlook, while filling the gap left by the mass exodus of amateur single-property landlords.
Between April 2021 and October 2024, 290,000 rental properties - around 6% of the private rented sector in England and Wales - were sold, according to Savills.
Rising interest rates, higher stamp duty and mounting regulation have driven many small-scale landlords to exit, with two-thirds citing mortgage costs as the main factor. The result has been a sharp contraction in rental supply, pushing rents up by 9% year-on-year to the end of 2024.
Stepping into this gap are professional SME developers. Unlike hobby landlords, these operators bring professional management, purpose-built rental stock, and a business-led approach to compliance and tenant services. By focusing on smaller developments in secondary locations, conversions, and emerging neighbourhoods, they are delivering homes in places that institutional developers often ignore.
The scale of hidden BTR activity
Rangewell’s analysis of Valuation Office Agency council tax data, cross-checked with Land Registry completions, highlights the strength of this “hidden” Build to Rent activity. Over the past two years, Leeds saw an estimated 7,780 potential BTR units, Birmingham 6,730, Salford 6,470 and Manchester 5,570. Outside the cities, Cornwall added 5,590 new homes.
Regionally, the South East (85,420 dwellings) and London (73,370) led the way, with the North West (57,230) and West Midlands (46,600) also strong. Smaller markets such as the North East (19,540) and Wales (17,330) showed limited growth. While not all completions will enter the BTR pool, the concentration of apartments - the format most often retained by SME developers - indicates significant supply is being added to rental stock.
Unlike large institutional schemes of 1,000 units or more, SME developments provide housing at a scale that integrates more naturally into existing communities. Rangewell says they offer personalised tenant relationships, faster response to maintenance issues and more flexible lease structures. They are also adding vital housing stock where large-scale development is not viable.
Alasdair McPherson, commercial property expert at Rangewell, commented: “We’re witnessing a fundamental shift in the rental market. As amateur landlords retreat, professional SME developers are stepping in with purpose-built rental properties, professional management standards and business discipline.
“These developers are the unsung heroes of the housing crisis, creating 6-25 unit schemes in neighbourhoods that institutional players overlook, converting older buildings, and delivering homes where people actually want to live. They can move quickly, finance projects efficiently and adapt to local market conditions in a way that larger funds cannot.
“Our research suggests that hidden Build to Rent activity could be ten to fifteen times greater than the volume visible on commercial portals. For investors, this is where the real opportunity lies, but it requires specialist finance to unlock.”
