Publication

The Future of Build to Rent Houses – Summary Report

The research is from a major industry-funded piece of research that considered the future role of the single family housing market in meeting current and future rental demand and Government’s homebuilding targets.


The research combined desktop analysis with questionnaires and interviews. A total of 25 interviews were conducted with organisations in the residential development and investment industry. We also ran two workshops with local authorities, government agencies and industry bodies.

The research was funded by the organisations shown below, and we would like to thank them for their support. We would also like to thank the organisations that took part in the research; the work would not have been possible without their support, time and expertise.

Jargon buster

  • Build to Rent – known as multifamily and single family housing in the U.S.

  • Build to Rent apartments – also called Multifamily and refers to urban apartment blocks for rent.

  • Build to Rent houses – also called single family housing (SFH) and single family rental (SFR) – refers to houses and low-rise flats in suburban locations.

  • PRS – an abbreviation for Private Rented Sector, which includes all households renting privately.


Report highlights

Terminology

This summary research paper considers the potential role of the SFH market in meeting current and future rental demand, as well as the Government’s homebuilding targets. SFH is a term used by investors to describe Build to Rent houses. The terms are used interchangeably in this report.


Definition of single family housing

  • High-quality | Typically, SFH homes are newly built. In some instances, homes are second hand and have been renovated/refurbished to match investor requirements.

  • Low-rise | SFH developments tend to be low-rise, with a higher proportion of open or green space compared to schemes in urban areas.

  • Mostly houses | The stock predominantly comprises houses with some flats. Flats delivered tend to be low-rise.

  • Well-located | There isn’t a definitive list of attributes that an area must have to qualify, but they will likely have schools on site or nearby, access to road and (in some locations) rail networks, open space and nearby shops.

The term ‘single family housing’ was not well understood by local authorities we interviewed for this research. Respondents asked: “What is the difference between SFH and BTR?” and “What is single family? Is it like Buy to Let?”.

BTR does what it says on the tin: designed and built for the institutional rental market

Jacqui Daly, Director, Residential Investment Research & Consultancy

The sector should use the terms ‘Build to Rent apartments’ and ‘Build to Rent houses’ for planning purposes or seek amendments to the NPPF in the upcoming 2024 review to include sub-definitions for ‘multifamily’ and ‘single family housing’ so that more local authorities can understand the terminology being used within the residential development and investment industry.

Read the other articles within The Future of Build to Rent Houses – Summary Report below

Articles within this publication

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