The landscape of London’s private rental sector is evolving, and build to rent (BTR) developments are at the heart of this transformation.

Get Living, a pioneering company based in Southwark, celebrates a decade since its inception, which has significantly influenced London’s rental market. The company took root in the former Athletes’ Village at the Olympic Park and has transformed it into a bustling neighborhood for over 6,500 residents. This community is now flourishing with independent shops and eateries, exemplifying the success of Get Living’s vision.

Rick de Blaby, CEO of Get Living, interviewed by The Standard, reflects on the company’s mission to simplify the rental process, which has historically been fraught with challenges for tenants, such as insecure tenures and hefty deposits. Drawing inspiration from North America’s established BTR sector, Get Living introduced innovations like three-year leases with flexible break clauses and a dedicated on-site team to assist residents—efforts that underscore the company’s commitment to enhancing tenant satisfaction.

The BTR Sector in London: Growth and Professionalization

Get Living is not alone in its quest to professionalize London’s rental experience. Several investors, including notable names like Quintain, Canary Wharf Group, and L&G, have launched BTR schemes across London. These projects aim to address the need for more professionally managed rental homes, a demand that has intensified as homeownership remains elusive for many and as buy-to-let landlords exit the market due to rising mortgage costs.

The Potential and Pitfalls of BTR in London

Recent research highlights the considerable potential for the BTR sector to expand, with forecasts from Knight Frank projecting its UK value could increase by 77% to £126 billion by 2028. However, London has seen a downturn, with BTR unit completions and starts both declining over the past year. This slowdown is due to several factors, including:

• Competition for Land: Traditional housebuilders often vie for the same plots as BTR developers, creating a challenging environment for BTR expansion.
• Planning Hurdles: Many council planning departments struggle with staffing issues and inconsistent approaches, resulting in prolonged application processes.
• Rising Costs: High inflation has led to increased costs for building materials and labor, affecting profitability and the pace of development.

Despite these obstacles, there is a strong undercurrent of resilience within the BTR sector. Savills’ Guy Whittaker notes that the number of projects under construction remains robust, a sign of the industry’s enduring appeal.

Long-Term Confidence Amidst Short-Term Challenges

Firms like Get Living remain optimistic about the BTR market’s future, supported by investors with long-term horizons. Get Living, for example, has a pipeline of 6,500 homes it plans to build, with upcoming projects in Elephant & Castle and Lewisham.

Similarly, Grainger, another major player in the BTR scene, has a significant number of units under construction in London. Industry leaders eagerly await policy developments that could address the housing shortage and stimulate the BTR sector’s growth.

Conclusion: The Crucial Role of BTR in London’s Housing Landscape

The BTR sector is poised to play an integral role in providing quality housing for London’s residents. While the sector navigates through the headwinds of increased costs and planning complexities, the fundamental need for professionally managed rental properties remains strong. With strategic management and supportive policies, the BTR sector may soon witness a resurgence, continuing to transform London’s rental market and offering attractive opportunities for property investors.