‘Investor confidence in BTR falling’ says new lobbying group

The multi-billion-pound build-to-rent (BTR) industry is having a rare wobble as it reveals that both Government policy, economic and regulatory issues are making it increasingly challenging to progress new schemes and ‘risk undermining investor confidence’.

So says a new lobbying group called the Built to Rent Alliance lead by the British Property Federation and Association for Rental Living, which is being led y Sheffield MP and former housing committee Clive Betts.

It quotes new Savills research that reveals that new BTR schemes in planning have dropped 18% since the beginning of the year, or just 5,000 home. Although London has seen a rise in BTR homes in planning, the rest of country has not.

The alliance’s launch commentary says: “This provides further evidence that recent planning reforms have so far had little impact when offset against significant viability challenges, with only high value land areas like London being able to absorb some of the additional costs and delays.”

The group is also seeking to bring other as-yet unnamed organisation into its fold with an “interest in the continuing success of BTR as a highly investable asset class”.
Other aims of the group are to persuade the public and Ministers that BTR is one of the keys to building more homes.

‘Consumer experience’

Its initial focus will be two-fold: advocating for the policy and regulatory changes needed to improve investor confidence; tackle current viability and delivery challenges; and  improve the ‘consumer experience’ and perception of BTR both within the wider private rented sector, as a  housing tenure of first choice.

It says this will be achieved through the adoption of a new Consumer Code.

Melanie Leech (main image, left), Chief Executive, British Property Federation says that while BTR has been a success to date, policy and economic challenges are now holding it back.

“This is now the sixth consecutive quarter where completions have outpaced starts and the number of schemes in planning has fallen,” she says.

“It is now clear that planning reform is not enough, and we need to see real action to address viability challenges and allow the sector to reach its full potential.

Brendan Geraghty (main image, right), Chief Executive, The Association of Rental Living, adds: “Against a backdrop of increased delivery challenges the need to speak with one sector voice has never been more paramount.”

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Author: Gemma