The rise of Build-to-Rent (BTR) developments in London

House prices in London are becoming increasingly unaffordable, and with limited rental properties available, Build-to-Rent (BTR) is emerging as a favoured option for both developers and long-term renters.

The British Property Federation reported a 7% growth in London’s BTR sector between Q2 2024 and Q2 2025. Since last year, the number of home completions in the capital has exceeded the number of new projects starting, taking the total number of completed units to nearly 132,300.

What is Build-to-Rent (BTR), and how does it work?

BTR developments are apartment buildings built specifically for rental, rather than the usual approach of developers selling private units to buyers and investors. Many renters who can’t afford to buy a home or need more flexibility opt for residency in such purpose-built and managed rental properties.

How popular is BTR in London?

In the second quarter of 2025, almost 43% (56,861) of the total BTR stock completed in the UK was in London. Also, more than 14,000 of the 51,216 units currently being built are in London, which shows that there is a lot of demand for BTR homes in the capital.

Why is BTR suited to London?

London’s huge housing demand is driven heavily by overseas students and working professionals who come to the city to study and work. A growing population, combined with affordability constraints, has made renting a more widely accepted lifestyle choice, with over a million households in the capital choosing to rent.

Where are the BTR hotspots in London?

BTR location trends in London differ from those in other cities such as Manchester, Birmingham and Leeds, where most developments tend to be close to the city centre. In the capital, well-connected suburbs such as Wembley, Croydon and other regeneration zones in East London, like Canary Wharf and Stratford, are among the most favoured areas for BTR housing.

Why do renters choose BTR schemes?

Unlike traditional rental properties, BTR developments offer several benefits and conveniences that long-term tenants tend to value.

Longer leases mean more stability

Many students and working adults want flexibility, but families or those who want to rent for a longer time (two to three years or more) prefer a dedicated renting space to the usual Assured Shorthold Tenancies, which last six to twelve months.

Community living with high-end amenities

Most BTR complexes include new residences because the industry is only a few years old. BTR developers offer high-end amenities like concierge services, gyms, clubhouses, and landscaped gardens, in addition to the peace of mind that comes with a closely regulated industry. Shared places like co-working spaces and terraced rooftops help renters feel a sense of community.

Professionally managed homes

Most developers also offer professional management services to meet tenants’ needs. A BTR development can provide better amenities and keep costs down more effectively than individual private lets because it operates on a larger scale. Rents also mostly include service charges and maintenance costs, which is convenient for tenants.

How does BTR differ from BTL?

i. In Buy-to-Let (BTL), a private investor buys a property to rent it out and earn income, and can also hold it for a long-term to boost capital growth.

ii. In Build-to-Rent (BTR), a developer or institutional investor will build an entire scheme, creating a large portfolio of rental properties and leasing them directly to multiple tenants.

What are the risks and returns associated with both models?

BTR offers stable, long-term income through large-scale operations and professional management that take care of tenant needs, reducing operational risks. Rental yields are also steady, offering moderate capital growth.

BTL landlords usually have a higher exposure to market volatility, tenant turnover and management or compliance issues if they do not seek proper lettings and management expertise.

Does BTR have government support or local backing?

The government classifies BTR as a distinct asset class within the private rented sector (PRS) and has guidelines under the National Planning Policy Framework (NPPF). As per the Planning Practice Guidance (PPG) for BTR, 20% of all units in a BTR scheme should be available to tenants at a minimum 20% discount to meet social housing targets. Many local councils also have policies supporting BTR, as it has the potential to meet municipal housing targets.

BTR with Benham and Reeves

With a rich lettings and management legacy of over 65 years, Benham and Reeves also works with leading BTR developers across London. We have 21 branches in the capital and 14 overseas offices with multiple country desks to make sure our clients receive a consistent stream of professional and well-referenced tenants. We can also assist with rent collections, furnishing, maintenance and other associated services.

Looking for a one-stop BTR lettings and management service? Contact us