鈥淭he Competition and Markets Authority鈥檚 call for 鈥渟ignificant intervention鈥� in housebuilding in Great Britain is well-founded, but this call for action should not be restricted to the new build homes for sale market. We need to provide allforms of housing tenure to meet demand, from new build homes for sale to social housing and private rented sector homes including Build to Rent (BTR) schemes.
鈥淎s reported by Savills, BTR delivery passed the 100,000 completed homes milestone in 2023 and is fulfilling an increasingly important role as a contributor to housing provision in the UK. Based on existing tenure distributions, if the government is to hit its target of 300,000 new homes per year, Savills calculates that 60,000 of those homes need to be in the private rental sector.
鈥淎n efficient, fit-for-purpose planning system is key to enabling this delivery of homes. The planning system has to provide protections, set standards and promote development for multiple (and often competing) stakeholders. Yet the current level of resourcing and inefficiencies in the system result in applications being prolonged or denied. Fair and reasonable scrutiny of development proposals is essential but so are the efficiency, certainty and proactive delivery required to underpin a housing market that is fit for both our current society and future generations. It鈥檚 time to stop trying to patch the holes in the current system and instead invest heavily and simplify it, with end customers 鈥� the UK鈥檚 homeowners and renters 鈥� at the core of that process.
鈥淐ustomer-centric services are at the heart of the Build to Rent sector鈥檚 work. BTR schemes are designed and built with the customer experience in mind. The soon-to-be-published new Build to Rent Code of Practice, delivered by the UKAA and developed with the input of urban and suburban BTR providers across the UK, will add further weight to this customer-centric approach.
鈥淏y keeping renters and housing quality in mind during planning process reforms, we can ensure that all those building new homes 鈥� whether for sale, social or private rent 鈥� can do so in a timely, efficient, and cost-effective manner. Doing so would be a far cry from the current planning process, which the Competition and Markets Authority report makes clear is a contributor to higher housing costs through the constraints it places on housebuilding.
鈥淲ith a streamlined planning process in place, the BTR sector can play an even greater role in building housing at scale for the UK鈥檚 renters. Appetite from investors is strong; the UK BTR sector saw a record 拢4.5 billion of investment in 2023, according to Savills. And with the ability to build much-needed, customer-focused housing at pace, the sector鈥檚 potential is huge. BTR can make a significant contribution in both urban and suburban areas, serving as an anchor tenant for regeneration and fulfilling a key community creation role. It can also deliver a range of tenures to suit long-term housing needs 鈥� apartments, single-family houses, co-living schemes and later living communities can all fit within the BTR umbrella.
鈥淭he CMA report has highlighted key failings for the customer in the current planning system and wider UK housebuilding market. It鈥檚 time to put things right.鈥�
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