Future-proofing – what is Build-to-Rent's Role in the Housing Crisis

It would be fair to say I’ve seen my fair share of lively discussions about the UK’s housing crisis but the recent roundtable I jointly hosted with JLL and AEW was a real coming together of minds and ideas. It brought together developers, a local authority, and funders for a no-holds-barred conversation about one of our biggest challenges—meeting the government's ambitious housing targets. The focus? Whether build-to-rent (BTR) could be the game-changer we so desperately need.

What’s all the fuss about?

Existing challenges dominated the start of discussions - it was unsurprising that planning challenges were weighing heavy on peoples’ minds, both from frustration with delays in processes and lack of clarity due in a large part due to a dearth of resource in the system. We saw the challenge at all ends, both in the local authority planning teams themselves and then the developers desperately trying to get schemes off the ground – the resounding view was that the current system maybe isn’t fit for purpose.

One developer highlighted the resolve of the industry to try and face the challenges head on saying : "We’re not short on ambition, we’re short on clarity." The combination of the maze of inconsistent policies and the overwhelming concern over the impacts of the gateways under the Buildings Safety Act could leave many projects either stuck in limbo or simply not able to get off the ground. 

Breaking the Blockages

The conversation didn’t stop at identifying problems – the table was brimming with ideas for how to unlock development and get things moving again:

• Simplifying Planning: Streamlining the process and creating consistency across local authorities could give developers much-needed confidence.
• Boosting Local Authority Resources: There was a resounding view that the current local authority resource, particularly in terms of building safety officers needed to be bolstered to reduce delays and potentially prevent projects suffering severe cost penalties as a result. 
• Engaging Communities Early: there was a lot of discussion of seeking the right product that is attractive to people and really thinking about community at the heart of any scheme to create a lasting and successful development. 

Build-to-Rent: A real Silver Bullet or merely low hanging fruit?

When we then looked at a potential solution in build-to-rent, this sparked a substantial discussion. For all its challenges, BTR offers something rare in the housing market—speed. It can deliver homes quicker than traditional build-to-sell models and attracts institutional investors with its stable income potential. With changes now to interest rates and diversification in funds, investors are increasingly looking to BTR to inject their capital into.  

It was agreed that really there’s no such thing as a silver bullet – no one thing is going to complete the puzzle or solve the intrinsic problems in the system. Affordability remains a sticking point, and there’s a risk that BTR could end up catering only to higher-income renters, a view that was echoed by one of the RPs in the room. But the general sentiment was that, while it can’t solve the housing crisis alone, the role of BTR cannot be overlooked and it has potential to be a real help in the housing market. 

Reflecting on the Roundtable

Walking away from the discussion, I really had a chance to reflect on the differing view points. The housing crisis is without doubt a considerable challenge but collaboration between different part of the supply chain can really help to get things moving. Collaboration is key but also at the heart it is making sure the right mix of people get a seat at the virtual housing table.

Developers, funders, local authorities, consultants – it needs to be collective effort and meeting of minds. No magic bullet this time, but no one can overlook the role BTR is and will play in meeting the housing demand and targets directly. 

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