What is Build to Rent?

Build to Rent refers to purpose-built rental accommodation owned by big businesses and managed by specialist operators. Unlike traditional buy-to-let properties, BTR developments are designed specifically for renting rather than for sale. 

What's the difference between Build to Rent and Buy-to-Let?

The key difference between the two is that BTR properties are professionally managed and owned by big businesses, while buy-to-let properties are typically owned by individual landlords. 

Why are Renters choosing BTR developments? 

Because BTR developments are larger, developers can include leisure facilities such as gyms, co-working spaces, lounges, and shared gardens. This creates a more attractive living environment, particularly for young professionals in big cities. 

Typical buy-to-let properties tend to be managed by solo landlords and have little to no scope for communal facilities. 

Build to Rent key facts & figures

Build to rent is a rapidly growing sector, with much of the growth centred in London:

• Knight Frank forecasts that £102 billion will be invested into the BTR sector by 2028.
• As of the second quarter of 2024, there were nearly 116,000 BTR homes completed in the UK, with an additional 45,000 under construction and 105,000 in planning stages.
• London accounts for approximately 38% of the total BTR pipeline, with significant developments also occurring in regional hubs such as Manchester, Birmingham, Leeds, and Glasgow.

Why are developers jumping on the BTR bandwagon?

There are several reasons why BTR is booming in popularity among developers:

1. Strong rental demand: With home ownership becoming unaffordable, more people are renting and for longer periods. This has created a huge demand for high-quality rental homes in urban centres.
2. Stable income streams: BTR developments are a source of reliable and consistent rental income for developers, often with lower vacancy rates than traditional rentals.
3. Cost savings: The large-scale nature of BTR schemes allows for operational efficiencies and cost savings in areas like property management, maintenance and marketing.

Institutional investors like pension funds and insurance companies looking to diversify their portfolios are attracted to the stable, long-term returns achievable from BTR. 

So, what’s the best way to find a suitable site for a BTR development?

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How to find the perfect site for your BTR development

Location is key for any successful BTR scheme. Look for sites with the following characteristics:

• City centre locations with good transport links
• Areas with large student and young professional populations
• Urban regeneration zones earmarked for redevelopment and investment

Of course, finding off-market development opportunities that tick all these boxes is easier said than done… 

That's where Searchland's powerful site sourcing tools can give you a competitive edge.

Our platform lets you instantly search and assess off-market land using the UK's most comprehensive source of planning and property data. Features like ownership insights and automated letter campaigns help you contact landowners directly and secure the best sites before your competitors.

Don't just take our word for it, leading real estate players like Avison Young are already using Searchland to fuel their development pipelines:

"Searchland gives us the data we need to have a competitive advantage in the market” - Josh Rose-Nokes, Director of Innovation and Insight at Avison Young.

Is BTR the future of renting?

With its focus on quality, convenience and community, Build to Rent looks set to transform the private rented sector in the years ahead. For developers who can secure the right sites and create compelling schemes, BTR offers an exciting and lucrative opportunity.

If you want to get ahead in the BTR space, book a demo to see how Searchland can power up your site sourcing.

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