Build to Rent: Overview and Council Support

Alternative funding models are often used in relation to Build to Rent (BTR) developments, which rely on institutional and/or international investors who must commit to the entirety of a project in one singular and significant monetary investment. We have taken account of best practice in other jurisdictions. Our research shows that the Built to Rent (BTR) sector has played an important role in the development of city centre living in other locations. The sector generates a range of benefits, including the fact that BTR developers/landlords take a long-term approach to their asset because the return is based on an income over time rather than a capital receipt upon completion of the development. This means there is a greater interest in successfully integrating the asset into the surrounding area and more interest in investing in placemaking. Other benefits include its capacity to be a catalyst for regeneration and its ability to deliver at scale, at speed with quick take-up and occupation and with subsidised and affordable tenures. The Council therefore recognises the importance of supporting such investors, noting that they normally have the scope to invest almost anywhere in the world. In this context, given that such proposals can't be phased to recycle funding and that returns are expected over a lifetime of a building, rather than at sale of units in traditional housing, the Council are working to support inward investment by addressing identified risks.