A combination of two associations dubbed the ‘Build to Rent Alliance’ has launched against the backdrop of falling build-to-rent (BtR) activity.
The Build-to-Rent Alliance was formed from the British Property Federation (BPF) and Association for Rental Living (ARL), while its remit will be advocating for policy and regulatory changes, as well as improving consumer experience and perception of build-to-rent.
The latter could be achieved through the adoption of a new Consumer Code, the group added, as it blamed low delivery of build-to-rent units on regulatory and policy issues.
Melanie Leech, chief executive, British Property Federation, said: “The formation of the BtR Alliance comes at a critical time for the Build to Rent sector.
“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.”
Analysis from the British Property Federation and Savills shows that completions for new build-to-rent developments continue to outpace start-on-sites for the sixth consecutive quarter and the number of new schemes in planning have dropped 18% since Q1.
This brings the pipeline of new homes in planning on a year-to-date basis to a low 5,000.
While London has experienced a 16% growth in schemes in planning, there has been zero growth across the regions.
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.
As a result, a key part of the Alliance’ remit is to continue to raise awareness in local authorities of the benefits of BtR and create a more accommodating environment for new schemes to come forward.
Brendan Geraghty, chief executive, The Association of Rental Living, said: “The creation of the new Alliance comes at a pivotal time for the Build to Rent sector.
“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.”
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