Key points –

1. Nearly half of London’s local planning authorities do not include Build to Rent (BTR) in their planning policies, leading to inconsistency in the development of new BTR schemes.
2. There is increasing demand and investment in the BTR sector, but this is not reflected in local borough policies, with a concentration of developments in just a few boroughs.
3. The London Plan supports BTR development, but local boroughs often fail to maintain this support, resulting in BTR projects being assessed against policies designed for private sale housing.
4. Experts from Lichfields advocate for local authorities to adopt policies that differentiate BTR from for-sale housing to simplify the planning process and promote sector growth.
5. Their report highlights the significant potential of BTR developments in addressing London’s housing challenges and setting a national precedent for housing solutions.

The latest report from Lichfields, a national consulting firm, sheds light on the inconsistencies and gaps in planning policies across London boroughs. This issue is particularly evident in the growing sector of Build to Rent (BTR) properties, which are increasingly in demand but are not being adequately supported by local planning authorities.

Understanding Build to Rent (BTR)

Before getting into the details, let’s understand what BTR is. Build to Rent properties are developments specifically designed for renting rather than selling. They offer tenants long-term security and are often managed by professional firms, providing a stable and high-quality rental experience.

The Core Findings of the Lichfields Report

Lichfields’ report, titled ‘Planning for Rent – The application for Build to Rent policy in London,’ reveals a mixed bag of planning policies across London’s boroughs. This inconsistency is a major roadblock in developing new BTR schemes. Here’s what the report found:

Inconsistent Local Policies

• Among the 35 local planning authorities in London, almost half (46%) don’t reference BTR in their planning strategies.
• This lack of uniformity in Local Plan policy is a significant barrier to the BTR sector’s growth.

Demand and Investment

• There is a rising demand for BTR properties, and investors are keen to tap into this market.
• This interest has led to an increase in BTR planning permissions.

Geographic Disparities

• 45% of bespoke BTR sites are located in inner London.
• Four boroughs – Brent, Newham, Ealing, and Enfield – account for 41% of these BTR developments.

Planning Permissions and Management

• Half of the BTR projects in London were initially granted permission as Build for Sale residential developments, but later transitioned to BTR management.

The Call for Change

Expert Opinions

Adam Donovan and Ben Kelway, authors of the report and experts at Lichfields, emphasize the need for change. They suggest:

Local Authorities Need to Step Up

• Individual boroughs should align their planning policies with the London Plan to fully support BTR developments.
• This alignment is crucial to address London’s housing needs effectively.

Policy Differentiation

• Policies should differentiate between BTR and for-sale housing.
• Current practices often assess BTR applications against policies meant for private sale developments, complicating the process.

The Potential of BTR

• With proper support, BTR can play a vital role in addressing housing issues not just in London but nationwide.
• Good quality BTR developments can contribute significantly to housing delivery and community building.

What’s Next?

The report provides a thorough analysis of BTR planning applications since 2009 and examines how development patterns align with existing policies. The findings point to a clear need for a more proactive and tailored approach from local authorities to support and promote BTR developments effectively.

In conclusion, while the London Plan lays a solid foundation for BTR, the lack of consistent support at the borough level is hindering the sector’s potential. By addressing these gaps, London can not only meet its current housing needs but also set a national example for BTR housing.