Build-to-rent booms as renters prioritise value and amenities

A growing number of renters are turning to build-to-rent (BTR) properties, attracted by stable costs and lifestyle benefits, a study reveals.

The analysis reveals that BTR is emerging as a preferred housing option for a diverse range of incomes and age groups, mirroring the broader private rented sector (PRS).

The report shows that BTR tenants spend around 30% of their income on rent, aligning with the national affordability standard and closely matching PRS expenditure.

The survey was conducted by the British Property Federation (BPF), the Association for Rental Living (ARL), and PriceHubble which also found that couples and sharers dedicate 28.5% of their income to BTR rent.

That compares to 26.6% in the PRS, while families spend 31% in BtR versus 28.9% in the PRS.

BTR is critical

The BPF’s chief executive, Melanie Leech, said: “Build-to-rent is making a critical contribution to housing across the UK and our latest research shows that it provides new high-quality homes that appeal to a wide demographic of people.

“The rental market is continuing to be squeezed by policy and legislative changes, which the latest delivery figures show is having an impact, and without the supply of new homes from institutionally backed build-to-rent developers, rental costs will continue to rise.”

She added: “It is essential that the UK living sector is seen as an attractive investment option, as build-to-rent homes will be a vital part of delivering the government’s ambitious housing targets.”

BTR rents cost more

The report highlights that single renters allocate 33% in BTR spending, slightly higher than the 31.4% in the PRS.

BTR developments are becoming popular for their inclusive amenities, with 60% offering gyms or wellbeing centres.

Around 29% provide fitness studios, and 70% featuring co-working or meeting spaces.

Amid high living costs, BTR’s zero-deposit options and bundled utility bills help to enhance its appeal.

Wide range of communities

The study also highlights BTR’s role in fostering diverse communities with the most common income band for residents being £26,000 to £50,000.

That accounts for 43% of tenants, compared to 45% in the PRS.

In contrast, single family housing (SFH) caters to lower earners, with 76% of SFH renters earning below £38,000.

The most common income band is £19,000 to £25,999, aligning with the PRS.

Couples love BTR

Age demographics in BTR also reflect the PRS, with 25- to 34-year-olds dominating at 51% of renters and 42% of PRS tenants.

It appears that couples and sharers are particularly drawn to BTR, making up 60% of its renters compared to 43% in the PRS, while 38% of SFH renters are families.

The fifth edition of the Who Lives in Build to Rent? report, the largest survey of its kind, draws on data from more 36,600 renters across 26,454 homes.

The report also underscores BTR’s growing role as smaller landlords exit the PRS, tightening supply and pushing up costs.

Brendan Geraghty, the chief executive of the Association for Rental Living (ARL), said: “This latest report reinforces the consistency of BTR to deliver attractive, secure homes for renter demographics that mirror the wider PRS.

“Looking ahead to the next five years and beyond, we would like to see the sector develop to make BTR even more accessible to more renters, across all demographics in the UK.”

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