Leaders of the Build To Rent niche have formed a new group after figures show BTR delivery slowing in every region of the UK and red tape making future progress difficult.
The British Property Federation (BPF) and Association for Rental Living (ARL) – both vocal cheerleaders of BTR – have formed something called the Build To Rent Alliance.
They says the alliance’s initial focus will be two-fold: firstly advocating for the policy and regulatory changes needed to improve investor confidence and tackle current viability and delivery challenges; and secondly improving the consumer experience and perception of BTR as a housing tenure of first choice.
The new lobby group comes as the latest analysis from the British Property Federation and Savills shows a sector in crisis.
Completions for new BTR developments continue to outpace start-on-sites for the sixth consecutive quarter and the number of new schemes in planning in the second quarter of this year have dropped 18% since Q1. This brings the pipeline of new homes in planning on a year-to-date basis to what the alliance describes as “a disappointingly low 5,000.”
On a more detailed basis, the figures show that while London has experienced a 16% growth in schemes in planning, there has been zero growth across the regions.
They say 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 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 will be to raise awareness in local authorities of the benefits of BTR and create what they call “a more accommodating environment for new schemes to come forward.”
Melanie Leech, the chief executive of the British Property Federation, says: “Build to Rent 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 Build to Rent home.”
And Brendan Geraghty, chief executive of 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. 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 importance audience, the very people who choose to live in BTR. It is for that reason a central pillar of the alliance’s work will to establish and promote a new Consumer Code to continue to make BtR for first housing choice for many.”
This article is taken from Landlord Today