Advisory Center for Affordable Settlements & Housing

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UK: Planning and Affordable Housing for Build to Rent

Recent years have seen the emergence of a new sector in the housing market, namely large-scale developments purpose-built for private rent – often referred to as ‘Build to Rent’. In part, the emergence of this sector is due to actions taken by the Coalition Government following the 2012 Montague Review but it also reflects underlying demographic and economic conditions of high demand for rented housing and the abundant availability of institutional capital for investment in residential property. The Government welcomes Build to Rent as a desirable and enduring feature of the housing market. This support is set out in the 2017 Housing White Paper . The number of new Build to Rent homes constructed is steadily increasing, but the Government has heard from developers and investors that barriers to development remain and that the capital available for investment could be deployed faster if those barriers are overcome. Acquisition of land, the predictability and speed of planning decisions for this emerging sector and the negotiation of planning obligations relating to affordable housing are frequently cited as key barriers. This consultation paper seeks views on planning measures intended to support Build to Rent through the planning system and make the benefits of Build to Rent more widespread. These include the availability of longer tenancies (to those tenants who want one) and facilitating a new form of affordable housing, known as Affordable Private Rent.

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