Residential
Build to rent. Would the site be worth more as rented homes?
Build to rent means building homes to let rather than to sell, and keeping them in single ownership and management. It is valued on the rent the homes produce rather than on sales, which changes the design, the funding and the planning. On the right site it can be worth more than homes for sale, or make a scheme work that would not sell quickly.
Who it is for
For landowners and developers weighing up selling homes against renting them, for investors funding or buying rental schemes, and for owners of sites near transport and town centres, where rental demand is usually strongest.
What to consider
- PlanningBuild to rent homes are normally the same use class as homes for sale, but many councils, and the London Plan, treat them differently on affordable housing. The affordable homes are usually let at a discount to market rent, and the homes must stay as rented homes for a set period, 15 years in London, secured by a covenant with a clawback if they are sold.
- ValuesAn investor values a rental scheme on its net rent and the yield it will accept, so operating costs, management and voids matter as much as the headline rent.
- Design and managementRental schemes need a single manager, durable specification, amenity space residents will pay for, and a layout that is efficient to run.
- FundingLarger schemes are often funded or bought by an investor before construction, through a forward funding or forward purchase agreement, which transfers much of the risk.
- Renters’ Rights ActSince 1 May 2026 tenancies in England are periodic and section 21 “no fault” evictions have ended. That affects how rental homes are let and managed, and investors will reflect it in their appraisals.
The options
- Sell the site with consent to an operatorPlanning secured for a rental scheme, then the site sold to a build to rent investor.
- Forward funding or forward purchaseAn investor agrees to fund the build or buy the completed scheme, before or during construction.
- Build and holdYou build and keep the scheme, and take the rent.
- Mixed tenurePart of the scheme for sale and part for rent, to spread the risk.
How we help
- Feasibility studies: what the site or building could become, and what each option costs and returns
- Site identification: finding and securing the right site
- Development management: managing the scheme, including the planning process and the right planning consultant
- Delivery strategy for complex sites
- Project management
Case studies
Guides
Common questions
Is build to rent better than selling homes?
Not always. It depends on the location, the scale, rental demand and what you want from the scheme. The two routes need to be compared on the same basis, including cash flow and risk, not just on headline value.
Does build to rent need a different planning permission?
Usually the homes are the same use class, but the planning permission and the Section 106 agreement will normally tie the homes to rental for a set period and set out the affordable housing on that basis.
Can smaller schemes be build to rent?
Large investors usually need enough homes to justify on-site management, so smaller schemes tend to suit private investors, single-family rental or a mix of sale and rent.
What does a build to rent investor look for?
Location, rental demand, an efficient design, durable specification, realistic running costs and a scheme that can be delivered on time.