MP Clive Betts to chair build-to-rent taskforce

The BPF said the taskforce will “work collaboratively to highlight the benefits” of build-to-rent and single-family rental homes.

“It is essential that the sector is better known and that planning decision-makers recognise its role in meeting need and providing investment into communities,” it added.

More than 123,000 build-to-rent homes have been completed since 2012 and a further 158,960 are either under construction or in planning.

However, build-to-rent still only accounts for 2% of all privately rented homes in the UK, where the private rented sector has traditionally been dominated by smaller buy-to-let landlords rather than institutional investors.

Build-to-rent homes typically consist of large blocks in urban centres, whereas single-family rental homes include low-rise flats and family homes in suburban locations.

Investment in the single-family sub-sector has increased markedly over the past few years and accounted for 40% of all build-to-rent activity in 2023.

Analysis by the BPF published last month showed that the build-to-rent sector had faced “a tough two years” but the number of new homes granted planning consent has increased by 35% over the past 12 months.

London is leading the regions in terms of new build-to-rent consents for the first time in two years. Outside the capital, the West Midlands recorded the highest number of new consents across 2024, mostly driven by Birmingham, which saw almost 3,700 homes consented out of 4,038 in the region.

However, according to Savills, the number of build-to-rent homes under construction has fallen 18% since the end of 2023.

Ian Fletcher, director of policy at the BPF, said build-to-rent has “diversified out of core cities and into single-family housing, and need for rental homes is well-identified”, but “very few local planning authorities yet have dedicated build-to-rent policies”.

He said: “The taskforce is seeking to ensure that local authorities and planning decision-makers have a thorough understanding of how the sector is evolving and the contribution it makes to community and regeneration.

“Against the backdrop of the government considering its 10-year housing strategy, there is a huge amount of investment interested in helping fund the chronic undersupply of new rental homes, which the taskforce will seek to harness.”

Brendan Geraghty, chief executive of the Association for Rental Living, said: “We must remove any factors that limit the potential scale of this delivery or undermine the confidence of investors.

“With a key focus of the taskforce being on protecting consumers, the build-to-rent code of practice and customer charter that we are creating will be central to defining and confirming the high standards of customer treatment as well as the quality and sustainability of homes essential to meet housing need.”