Two major organisations have come together to form an alliance in the hope of improving the outlook for build-to-rent homes.
The Build to Rent Alliance has been created at a time when the latest figures show build-to-rent (BtR) delivery slowing across every region of the UK.
As well as uniting the two major sector representative bodies in the British Property Federation (BPF) and Association for Rental Living (ARL), the alliance seeks to bring together a representative group of those with an interest in the continuing success of BtR as a highly investable asset class, optimum delivery model for new homes, and the rental destination of choice for consumers.
The Alliance’s initial focus will be twofold: advocating for the policy and regulatory changes needed to improve investor confidence and tackle current viability and delivery challenges, and improving the consumer experience and perception of BtR both within the wider private rented sector, as a housing tenure of first choice.
This will be achieved through the adoption of a new consumer code.
The formation comes as the latest analysis from the British Property Federation and Savills shows that completions for new BtR developments continue to outpace start-on-sites for the sixth consecutive quarter and the number of new schemes in planning has dropped 18 per cent since Q1.
This brings the pipeline of new homes in planning on a year-to-date basis to a disappointingly low 5,000.
The Q2 figures also demonstrate the impact that delays at the Building Safety Regulator (BSR) are starting to have on BtR delivery across England, further depressing the number of schemes able to progress to commencing start-on-site.
This, along with other viability challenges, is starting to have a mild chilling effect on investment sentiment in the sector, once viewed as offering a transformative impact on accelerating housing delivery.
As a result, a key part of the alliance’s remit is to continue to raise awareness in local authorities of the benefits of BtR and create a more accommodating environment for new schemes to come forward.
Melanie Leech, chief executive, BPF, says: “The formation of the BTR Alliance comes at a critical time for the BtR sector.
“BtR has been the major success story of housing delivery over the last decade but is under increasing pressure from a combination of economic and policy factors.
“This is now the sixth consecutive quarter where completions have outpaced starts and the number of schemes in planning has fallen.
“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.
“A key focus of the Alliance will be to elevate awareness of the importance of the sector with policymakers and ensure that policy and regulatory conditions facilitate delivery of much-needed BtR home.”
Brendan Geraghty, chief executive, ARL, adds: “The creation of the new alliance comes at a pivotal time for the BtR sector.
“Against a backdrop of increased delivery challenges, the need to speak with one sector voice has never been more paramount.
“But nor has the need to ensure that the benefits of BtR are conveyed far and wide, including how it can act as a catalyst for town centre renewal and support a growing economy.
“Nor should we forget about our most important audience, the very people who choose to live in BtR.
“It is for that reason a central pillar of the alliance’s work will be to establish and promote a new consumer code to continue to make BtR for first housing choice for many.”
