Leaders within the Build to Rent (BTR) sector have joined forces to create a new alliance, following a period of slowing growth across every part of the UK. The sector, once heralded as a vital solution to the country’s housing crisis, is now facing significant headwinds caused by rising costs, regulatory delays and planning challenges.
The British Property Federation (BPF) and the Association for Rental Living (ARL), two of the most prominent voices supporting BTR, have announced the launch of the Build To Rent Alliance. This new lobby group has set out two main priorities in its initial phase.
Firstly, it will campaign for meaningful policy and regulatory changes aimed at boosting investor confidence and tackling the financial and delivery issues currently holding back the sector. Secondly, the alliance wants to focus on shifting public perception of BTR, positioning it as a desirable and high-quality housing option rather than a backup for those unable to buy.
The decision to form the Build To Rent Alliance comes at a time when the latest data paints a worrying picture for the industry. According to fresh analysis from the British Property Federation and Savills, the number of newly completed BTR developments has outpaced the number of new sites starting construction for six consecutive quarters.
In the second quarter of this year alone, the number of new BTR projects entering the planning system dropped by 18% compared to the first quarter. On a year-to-date basis, this means there are just 5,000 new homes currently in planning – a figure which the alliance has described as “disappointingly low,” especially in the context of the UK’s ongoing housing shortage.
Digging deeper into the regional breakdown reveals that London remains something of an exception, with a modest 16% increase in schemes entering planning. However, outside the capital, the picture is far less encouraging, with zero growth recorded across the rest of the UK.
This imbalance suggests that while recent planning reforms have been introduced, they have yet to make a real impact beyond high-value areas like London. These prime markets are often better able to absorb increased development costs and the financial uncertainty caused by delays. Meanwhile, in regional cities and towns, many BTR projects are struggling to remain viable.
The alliance also highlighted the growing influence of the Building Safety Regulator (BSR) on delivery timescales. Recent delays in BSR approvals have further slowed the progress of new BTR schemes, making it more challenging for developers to bring projects to site.
This combination of challenges is starting to undermine confidence among investors, who had previously viewed BTR as a stable and attractive sector capable of delivering much-needed new homes at pace. What was once seen as a transformative model for accelerating housing delivery is now at risk of stalling.
Martin Bellinger, a founding member of the Build To Rent Alliance, stressed the urgency of addressing these issues. He noted that BTR has huge potential to ease the UK’s housing shortage, but only if it is backed by supportive policies and a regulatory environment that encourages investment rather than adding hurdles.
The alliance has also committed to working closely with government bodies, local authorities and industry stakeholders to ensure that BTR remains an appealing option for both investors and renters. A key part of this work will be improving awareness of the benefits BTR can offer tenants – from longer tenancy options and professional management to modern amenities and community-focused design.
Looking ahead, the Build To Rent Alliance believes that by addressing the structural issues currently affecting the market, it is possible to unlock a new wave of development. This, in turn, could help to meet the country’s growing demand for quality rental housing and support broader economic growth.
Yet, as the latest data shows, time is of the essence. Without swift and decisive action, the risk is that the sector’s potential may remain unrealised – leaving thousands of renters without the modern, professionally managed homes they want, and further delaying progress on tackling Britain’s housing crisis.
As part of its mission, the new Build To Rent Alliance aims to raise awareness within local authorities about the wider benefits of Build to Rent (BTR) and encourage what it describes as “a more accommodating environment for new schemes to come forward.”
Melanie Leech, chief executive of the British Property Federation, highlighted that BTR has been one of the biggest success stories in housing delivery over the past decade. However, she warned the sector now faces mounting pressures due to a mix of economic challenges and policy decisions.
“This is now the sixth consecutive quarter where completions have outpaced starts, and the number of schemes in planning has continued to fall,” Leech explained. “It is now clear that planning reform alone isn’t enough. We urgently need practical measures to address viability challenges so the sector can realise its full potential.”
She added that a central part of the alliance’s work will be to raise awareness among policymakers of just how vital BTR is in helping meet housing demand. The goal is to make sure policies and regulations actively support the delivery of new BTR homes rather than hold them back.
Brendan Geraghty, chief executive of the Association of Rental Living, echoed this call for action. “Given the rising challenges to delivery, the need for the sector to speak with a single, unified voice has never been greater,” he said.
He also stressed the importance of communicating the broader benefits of BTR to communities, including its potential to help regenerate town centres and boost local economies. “It isn’t just about numbers,” Geraghty noted. “It’s about how BTR can act as a catalyst for positive change.”
Importantly, the alliance also intends to focus on renters themselves — the very people who choose to live in BTR developments. To support this, one of its key projects will be the creation and promotion of a new Consumer Code. This code aims to ensure a consistently high standard of living and customer service across the sector, making BTR the first housing choice for more people.
By combining efforts to tackle viability challenges with initiatives to highlight BTR’s social and economic benefits, the alliance hopes to secure a stronger future for the sector — ultimately delivering more professionally managed, high-quality rental homes across the UK.