The British Property Federation is calling upon more councils to support Build To Rent following the government’s recognition of the sector in its revised National Planning Policy Framework.
This formal recognition in the NPPF stipulates that local councils should plan for BTR and that the sector is exempt from the provision of affordable homes for sale – rather, Discounted Market Rent, or what is now known as Affordable Private Rent, should be accepted.
The BPF says that for investors and developers seeking to grow the sector, typically institutional investors who manage pensioners’ savings, this separate assessment in planning guidance is a significant boost.
But it claims the revised NPPF will only be effective if local councils across the country understand the benefits of Build To Rent, including its potential contribution to solving the housing crisis.
The BPF says BTR will promote family-friendly tenancies, such as for three years, for those who want longer-term stability when renting.
The federation has also updated its figures on the new sector.
There are now 105,214 BTR homes in the UK (in planning, under construction and complete), with 59,271 in London and 45,943 in the rest of the UK.
Melanie Leech, BPF chief executive, says: “Build To Rent has truly come of age this week, with formal recognition in the Government’s revised NPPF that it must be treated differently to homes for sale.
“Our members have billions of pounds of investment ready to invest in the sector, and we welcome the impetus from central Government to grow the sector, adding to much-needed supply of new homes. Local councils have been both leaders and followers in supporting the sector, but I hope most will now get behind it, because a well-functioning housing market should meet everyone’s housing needs.”
Earlier this week we reported that Dominic Martin, business development director of Atlas Residential - a BTR developer and operator - called on councils to improve their awareness of the sector as a means of solving the housing shortage.