News Build-to-Rent: The Pathway to Ownership

Build-to-Rent: The Pathway to Ownership

Features, News

February 05, 2025

The Labour government is focusing on housing delivery numbers, looking at new policy and throwing around seemingly large sums of money to solve the issue. Let’s ignore, for now, the sleight of hand that tries to suggest that the billions of pounds for housing does anything more than deliver a fraction of what’s required, and look to the wider issue that appears to be missing from their focus. Building housing is not just a numbers game – it’s about building homes which are the bedrock of people’s lives, families and communities.  

If we are to reduce the demand and provide homes, then all forms of housing are going to need to contribute – for sale, affordable, later living, student, co-living and Built to Rent (BTR). Stewarded and investor-led housing, in particular BTR, can play a vital role in contributing to the homes we need while strengthening our communities, especially given the imbalance in the rental market. Currently there are 30% fewer homes to rent across the UK compared to the 2018–19 average, a figure that has hardly changed since the start of 2022 (Savills, 2024). BTR can really help increase the provision for high-quality rental options, particularly in urban areas.

In some quarters there appears to be a sense of antipathy towards BTR, suggesting it to be a housing option that ultimately replaces home ownership, the seemingly fundamental British right gifted down by Thatcher herself, and that we all, in the fullness of time, become beholden to landlords and equity impoverished. But if you frame BTR as a complimentary option to For Sale housing, and part of the journey toward home ownership, rather than a replacement for it, it becomes a more interesting proposition. One of BTR’s key strengths is the opportunity it provides tenants to "try before you buy”, allowing people to experience an area, explore its amenities, and assess its suitability for future living. It de-risks decision making for those considering major life changes, such as starting a family, enabling more informed decisions about where to settle. This model is particularly attractive to younger professionals, couples, and those not yet ready to commit to home ownership.

Despite common misconceptions, BTR developments are not dominated by short-term residents, insular and nomadic, using their homes as domiciles only and roaming the city to the exclusion of the local area. Tenant retention is key for BTR and therefore they are designed to attract people who are seeking longer-term living arrangements and encourages them to engage with their surroundings. Instead of isolating residents, these developments often feature shared amenities like cafés, gyms, and co-working spaces that are open to the wider community, encouraging social cohesion.

The developments are always located in areas high on amenities, further strengthening community ties and encouraging a sense of connection. This inclusive approach enriches the local area and helps new residents fit in, creating a natural extension of the neighbourhood, which ultimately could lead to tenants putting down stronger roots through buying. We see this all the time in PRP’s BTR developments all over the city, where residents are moving into home ownership because of the positive BTR experience they have had in the area.

As architects, we also have in our gift the ability to further strengthen interaction and cohesion through good design. We should be promoting spontaneous connections within and outside of our buildings, from seating areas near lifts to shared gardens to co-working spaces. The more that we encourage the sense of community, the longer residents will stay and the stronger the communities become. While we can’t dictate social interaction, we can design spaces that encourage it, helping to foster well-being and a sense of belonging.

Ultimately, BTR represents a lifestyle that not only provides a pathway to homeownership but also prioritises social engagement, placemaking, and community value. At PRP, we are proud to be at the forefront of creating developments that go beyond housing, offering spaces where people can build lasting connections and feel a genuine sense of belonging. By prioritising these elements, we’re helping to create happier, more cohesive communities for the future.

By Craig Sheach, Partner at PRP

First published in BTR News