NRLA urges Buy To Let to complement Build To Rent sector growth
The National Residential Landlords Association (NRLA) highlights the crucial role of Build To Rent (BTR) in UK housing development and calls for Buy To Let (BTL) to work alongside it to meet housing needs effectively.
The NRLA Living division has released data showing that Build To Rent developments have accounted for a significant share of new homes in key regeneration areas across the UK over the past decade. The association emphasises that BTR should not be seen in isolation but as part of a broader housing strategy that includes the traditional Buy To Let sector.
NRLA Living’s research reveals that BTR has delivered an average of 61% of new homes built in eight major regeneration zones, despite representing less than 2% of the national housing stock. In locations such as Stratford in London and Redcliff in Bristol, BTR accounted for 87% of new homes over ten years. Other notable areas include Milton Keynes Central with 73% and Blackhorse Lane in Waltham Forest at 66%.
Build To Rent’s role in regeneration and community growth
According to NRLA Living, BTR acts as an ‘anchor tenant’ in regeneration projects by introducing new residents early in the development process. This early population presence helps stimulate local economies, supporting businesses such as cafés, bars, and restaurants, and encouraging the creation of mixed-use neighbourhoods.
The report also notes that areas with higher BTR activity have experienced greater population growth, particularly attracting younger adults aged 20 to 39. On average, these regeneration areas with substantial BTR presence have drawn five times more young adults compared to other local authority areas.
NRLA Living supports institutional investors, developers, and operators in managing and expanding their BTR portfolios, aiming to reduce investment risks and promote sustainable growth in the sector.
NRLA’s call for balanced housing policy
NRLA chief executive Ben Beadle stresses that Build To Rent and Buy To Let must coexist and complement each other to effectively address the UK’s housing shortage. He argues that government policy should encourage investment in both sectors rather than favouring one over the other.
Beadle warns that without a balanced approach that values both BTR and BTL, the government will struggle to meet its ambitious housing targets. He highlights the need for a bold vision that recognises the contributions of both sectors in delivering housing at scale.
Implications for landlords and letting agents
This NRLA report underscores the evolving dynamics within the private rented sector, where large-scale institutional BTR developments are becoming more prominent but still represent a small fraction of overall housing stock. For small and medium-sized BTL landlords, the message is clear: their role remains vital alongside these newer models.
Landlords and letting agents should be aware that BTR developments often bring different management and compliance challenges compared to traditional BTL properties. The growth of BTR may influence local rental markets, tenant demographics, and demand patterns, particularly in regeneration areas.
Agents may see increased opportunities to manage mixed portfolios that include both BTR and BTL properties, requiring flexibility in service offerings and tenant engagement strategies. Understanding how BTR developments integrate with wider community regeneration can also inform marketing and property management approaches.
Future uncertainties and policy considerations
While the NRLA’s findings highlight BTR’s positive impact, questions remain about how government policies will evolve to support both sectors effectively. The balance of incentives, regulation, and planning frameworks will be critical in shaping the future housing supply landscape.
Landlords should monitor ongoing policy developments, particularly those affecting investment conditions, tax treatment, and regulatory compliance for both BTR and BTL properties. The interaction between these sectors may also influence local licensing schemes and safety obligations, especially as regeneration projects continue to expand.
Practical steps for landlords amid sector changes
Landlords should review their portfolios in light of the growing BTR presence in certain areas, considering how this may affect tenant demand and rental values. Maintaining up-to-date records and compliance documentation will be essential, particularly if local authorities adjust licensing or safety standards in response to regeneration activity.
Engaging with professional bodies like the NRLA can provide landlords and agents with insights into sector trends and policy shifts. Staying informed about BTR developments in their regions will help landlords anticipate market changes and adapt their strategies accordingly.
Supporting landlords with compliance and portfolio management
The Landlord Association (TLA) offers membership benefits that can assist landlords and letting agents in managing the challenges and opportunities arising from the interplay between Build To Rent and Buy To Let sectors. Through TLA’s compliance resources, members can access up-to-date information on regulatory requirements, including safety obligations and licensing changes that may affect properties in regeneration areas.
TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, aims to help landlords organise their portfolios more efficiently. Features in development include managing rental documents and records, recording key compliance actions, and accessing TLA’s property management AI assistant. These tools can support landlords in maintaining evidence of compliance and adapting to evolving sector demands.
Exploring TLA membership and ORBIT BETA access can provide practical support for landlords seeking to navigate the complexities of a rental market increasingly influenced by Build To Rent growth alongside traditional Buy To Let investments.
As the housing sector continues to evolve, landlords and agents should remain vigilant to policy changes and market developments, ensuring their portfolios and practices are well-positioned to meet future demands.
Sources: Landlord Today
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