BPF Spotlight Series: Build-to-Rent
We caught up with Kate Butler, our Assistant Director of Policy (Real Estate), to get her thoughts on the Q1 2025 Build to Rent (BTR) stats.
💡 In the spotlight, Kate highlights the standout trends from the data, the current challenges facing the BTR sector and what she’ll be keeping an eye on for the rest of the year. Over to you, Kate:
âť“What general trends are you noticing in the latest BTR stats?
🗣️ We’re continuing to see strong completions, with over 127,000 BTR homes now delivered. More than 17,000 of those were completed in the past year alone. The sector is expanding into more areas and local authorities, which is encouraging. However, a bottleneck remains in moving schemes through the construction phase, and there has been a drop in the number of homes with detailed planning permission. This raises real concerns about the long-term sustainability of the supply pipeline.
âť“Completions have exceeded starts again this quarter - what should we make of this trend?
🗣️ The main takeaway is that converting investor interest into the actual delivery of homes continues to be a major challenge. Many projects are stuck between outline planning and construction due to viability issues and uncertainty around timelines. Delays related to the Building Safety Regulator, along with rising build costs and broader economic pressures, are making it harder to bring projects forward. These issues are slowing progress and putting the Government's goal of delivering 1.5 million homes at risk.
âť“It is encouraging to see a 13% rise in consented homes. Do you think this will help balance out the slowdown in starts?
🗣️ It is definitely a promising development. The increase in consented homes, and growth in planning activity more generally, suggests positive momentum. But the real challenge lies in getting those homes through to the construction phase. Overcoming viability issues and other delivery obstacles will be essential to turn planning approvals into completed homes.
âť“Looking ahead to the rest of 2025, what are the key trends or figures you will be keeping an eye on?
🗣️ This quarter saw the highest level of new investment in the sector since 2022, which shows growing confidence after a difficult period. There’s now a real opportunity for the Government to build on this momentum to help meet housing targets. We’re expecting specific support for the sector in the 10-Year Housing Strategy. Alongside that, addressing building safety delays and ensuring a smooth transition under rental reform will be key to supporting delivery.
