Build to Rent (BTR) is an increasingly important part of the housing mix. Over 127,000 homes have now been delivered through the model, with investment activity up by 40% in Q1 2025 alone. BTR is growing faster than any other housing tenure, accounting for 14% of new accommodation in large cities and increasingly seen as a critical contributor to meeting national housing targets. 

But the BTR sector remains poorly understood by many of those it most needs to engage: MPs, councillors and local authority planners. It is no exaggeration to say that political misunderstanding has become one of the key obstacles to further growth. 

The result is a disconnect between BTR developers and those shaping policy. Unless this is addressed, the sector risks falling short of its potential - not just commercially but in its capacity to address a wide range of social and political priorities, from improving housing standards to revitalising urban areas. 

A solution to political challenges

With housing never higher on the political agenda, BTR ought to be part of the solution. The government’s target of 1.5m new homes over five years cannot be delivered through the traditional 70% market / 30% affordable housing mix. A more realistic model, we believe, is one that incorporates BTR as a third pillar. 

Single Family Housing (SFH) is particularly well placed to help address the chronic undersupply in towns and suburban areas. SFH has grown from just 2% of BTR deal volumes in 2020 to 43% in 2024 and could play a key role in unlocking major new communities. 

Yet many politicians still see BTR as either a niche investment product or a temporary fix for those priced out of ownership. In reality, BTR is a long-term housing solution offering high-quality, professionally managed homes that meet the needs of a growing and diverse rental population. It offers stability for families, choice for young professionals and a responsible alternative to the private rented sector. 

And it brings benefits beyond the residents themselves. Well-designed BTR schemes help revitalise high streets, make good use of underutilised brownfield land and attract significant inward investment. 

Misconceptions and missed opportunities
The problem lies partly in visibility. Despite a growing number of units in the planning process, BTR is still absent from many Local Plans. Half of London’s 35 local planning authorities make no reference to it in their adopted or emerging policies. 

Without policies that reflect the characteristics of BTR, developers face delays and uncertainty. Issues such as unit size, parking requirements and heating systems are often assessed against build-for-sale benchmarks, despite having different design and operational needs. 

Some councillors remain wary of BTR altogether, fearing it brings transient residents with limited voting power. Others struggle to see the electoral upside of supporting a tenure not directly linked to home ownership. 

The need for political education
There is real appetite in the sector to build more, faster. The Association for Rental Living’s ambition is to deliver 30,000 BTR homes per year and industry leaders believe that number could be comfortably doubled if only more planners, MPs and investors understood the model and supported it accordingly. 

The BTR Taskforce is a promising step in this direction. Its goal is to promote BTR, protect consumers and foster public-private partnerships. Equally important is its role in educating policymakers about how BTR works and what it can achieve. 

This is particularly urgent as new planning policies take shape. The introduction of new National Development Management Policies (NDMPs) presents a real opportunity to address the current policy vacuum and ensure BTR can compete on an equal footing with more familiar typologies. We urge the Secretary of State to include BTR among these policies and bring them forward at pace. 

Unlocking the future of rental living
BTR is not a stopgap. For many, it is a long-term lifestyle choice. Survey data shows that although the majority of young adults still aspire to buy, their reasons for doing so - stability, control, quality of life - are already being delivered by BTR. 

Meanwhile, the sector continues to push up standards. It is rated more highly by tenants than for-sale homes across key criteria, and is leading the way on energy efficiency, customer service and professional management. 

So the challenge is not whether BTR can help meet the UK’s housing needs, but whether we can create a policy environment that allows it to do so. BTR is available address the housing crisis but government - national and local – must recognise and support this.