Planning red tape has caused a slowdown in build-to-rent (BTR) schemes that risks undermining investor confidence, according to the new Build to Rent Alliance.
Although BTR is becoming a major competitor for private landlords in many cities, the group reports that planned new schemes have dropped 18% since Q1, bringing the pipeline of new homes this year to a disappointingly low 5,000 amid growing evidence that policy and regulatory issues are making it hard for them to progress.
Delays at the Building Safety Regulator are also starting to impact BTR delivery across England and have a “mild chilling effect” on investment sentiment in the sector, once viewed as offering a transformative impact on accelerating housing delivery, it reports.
The alliance has been set up to help improve investor confidence and tackle viability and delivery challenges as well as to improve the consumer experience and perception of BTR through the adoption of a new consumer code. A key part of its remit is to raise awareness among local authorities about the benefits of BTR and create a more accommodating environment for new schemes.
Members include the British Property Federation (BPA) and Association for Rental Living. Melanie Leech, chief executive of the BPA, says the sector has been the major success story of housing delivery over the last decade but is under increasing pressure.
“This is now the sixth consecutive quarter where completions have outpaced starts and the number of schemes in planning has fallen,” she explains. “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.”
Clive Betts MP, who chaired the Housing, Communities and Local Government Committee until 2024, is championing the sector and leading the alliance, which also includes landlords Grainger and L&G.
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