CONCLUSION
CONCLUSION
The UK Build-to-Rent sector has grown exponentially in recent years and has now reached a fascinating point, ready to address significant housing needs while promoting sustainable development and attracting substantial investment.
Our report highlights the sector's essential role in mitigating the UK's housing crisis, with 65% of surveyed developers and funders recognising its importance. The strong commitment to sustainability, emphasised by 98% of respondents, marks a clear focus on practices that boost asset performance and community wellbeing.
Investment in BTR remains robust, with half of funders showing a very strong appetite for lending. Developers share this optimism and the sector's resilience and long-term potential make it an appealing opportunity for foreign investment.
Despite these positive trends, high and rising build costs can still frustrate growth while challenges persist, such as regulatory hurdles (including the planning system) and the need for experienced operators. Public sector financing plays a role in overcoming some of these obstacles, but there is much that can be learned from the mature US BTR market to meet challenges now and plan for the future.
This analysis provides the foundations for unlocking the full potential of the UK BTR sector, ensuring its continued sustainable growth and positive societal impact.
Our report highlights the sector's essential role in mitigating the UK's housing crisis, with 65% of surveyed developers and funders recognising its importance.
The strong commitment to sustainability, emphasised by 98% of respondents, marks a clear focus on practices that boost asset performance and community wellbeing.
Looking ahead
UK BTR has a very important role to play in solving the UK housing crisis but the rate and scale at which capital can be deployed towards that solution will depend on our collective ability to tackle the challenges of planning and regulatory reform and on the macro-economic climate and its impact on build cost and viability.
Tom Willows concludes:
The UK BTR story is ever changing. The sector can address critical housing needs and foster sustainable development, buoyed by strong investor interest and the experiences of other markets. At Womble Bond Dickinson, we are committed to guiding our clients through the next chapter, ensuring they can seize the opportunities and navigate the challenges ahead. The growth potential of BTR is immense, and with collaborative efforts, we can unlock its full potential to a better future for UK housing.
Contact our team
John Connor
Partner, Head of Financial Institutions sector
T +44 (0)113 290 4478
