The UK is grappling with a myriad of housing challenges, one of the most pressing being the inadequate supply of rental properties to meet the growing demand. Yet, a solution exists in the Build-to-Rent (BTR) sector, an initiative that appears not to be given the recognition it deserves, particularly at the parliamentary level.
MPs’ Perspective on BTR Homes: A Disconnect?
Strikingly, only about 11% of UK Members of Parliament (MPs) deem the development of new BTR homes a priority for their local constituencies, according to new research. This is despite compelling evidence illustrating a high demand for rental properties.
In a survey exploring MPs’ housing concerns within their constituencies, the priority accorded to BTR homes was startlingly low – ranking seventh among eight listed housing options. This demonstrates a concerning gap in their understanding of the significance of the BTR sector, given its potential to address the UK’s pressing housing needs.
Partisan Perspectives on Housing
Differences in housing priorities emerge along party lines. For example, private sale housing emerged as the top priority for approximately 63% of Conservative MPs. In contrast, Labour MPs are more inclined towards prioritising council housing and social rent homes.
The survey data indicated that only 14% of Conservatives and 10% of Labour MPs prioritise BTR homes within their constituencies. With the upcoming general election possibly favouring Labour, this lack of understanding about the BTR sector by its MPs is particularly concerning.
Overlooking the Demand for BTR in London
Over half of all BTR homes are concentrated in London, where the demand for rental properties remains high. Yet, this urgent necessity seems to be overlooked by legislators, as no London MPs pinpointed the BTR sector as a top housing priority. This lack of awareness presents an additional hurdle to the growth of the BTR sector in the capital.
The Benefits of BTR Homes: An Urgent Need for Greater Awareness
Executive Director at Cavendish, Max Camplin, highlighted this glaring problem, “Our research shows there is clearly a lack of prioritising the development of BTR homes at a national level. Every day we hear stories from the private rented sector – of people paying high rents for properties that don’t meet their needs, with negative financial, mental, and physical impacts.”
He argues that compared to some sectors of the rental market, which can feature poor quality, badly managed properties, BTR offers high-quality, safe, and affordable rental homes for a broad range of income levels. But the property industry needs to do more to communicate these benefits to political decision-makers.
Need for Clarity and Communication on BTR Homes Benefits
Although a significant majority – 58% of MPs – support increasing the number of BTR homes in their constituencies, an important fraction (around one-third) remains uncertain about their stance. This underlines the need to enhance knowledge and communication about the benefits of BTR homes to local communities.
“BTR has the potential to help solve the housing crisis in Britain, yet the demand for rental properties far exceeds the supply, leaving the UK’s renters missing out on the benefits of BTR,” said Camplin. Despite the significant potential of the sector, six other housing types take priority over BTR among MPs.
Calling for Increased Awareness and Action
“The sector is still largely misunderstood by politicians, calling for enhanced awareness as we approach the forthcoming General Election,” emphasised Camplin. It’s crucial that each political party outlines its vision for addressing the housing supply crisis. The time is ripe to increase awareness, challenge misconceptions, and place the BTR sector at the heart of a UK housing revolution.
The unrealised investment in new BTR homes is hurting the UK’s housing market, prohibiting growth, and resulting in too many people renting inadequate and poorly managed accommodation. However, with greater understanding and acknowledgement of the value of the BTR sector among MPs, there is the potential for a radical shift in meeting the housing needs of the UK population.