Residential
Single-family rental. Houses to rent, not to sell?
Single-family rental is build to rent for houses: family homes built to let and kept in one ownership, usually in suburban and town-edge locations rather than city centres. Investor interest has grown in recent years, and selling a phase of houses to a rental investor can reduce a scheme’s sales risk and bring money in earlier.
Who it is for
For landowners and developers with sites suited to houses, for housebuilders looking to sell a phase to an investor, and for investors looking to buy or fund family rental homes.
What to consider
- PlanningThe homes are normally the same use class as houses for sale, so the planning is usually similar, with affordable housing set by local policy. Where the houses are to be kept as rented homes, the Section 106 agreement may say so.
- ValuesAn investor values the houses on their net rent and yield. Maintenance, management and voids over many years matter more than the sales premium on a new home.
- SpecificationHomes kept for the long term need durable finishes, low running costs and good energy performance, which affects the build cost.
- Phasing and salesSelling a phase to an investor early in the scheme can fund the infrastructure and reduce the number of homes that need to be sold on the open market.
- Renters’ Rights ActSince 1 May 2026 tenancies are periodic and section 21 evictions have ended, which investors will reflect in how they manage and value the homes.
The options
- Sell a phase to a rental investorPart of the scheme sold in one go, often before construction.
- Build and holdYou build and keep the houses, and take the rent.
- Mixed sale and rentHouses for sale and for rent on the same site, phased to suit both.
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
Guides
Common questions
What is single-family rental?
Houses, rather than flats, built to rent and kept in single ownership and management, usually by an investor.
Who buys single-family rental homes?
Mostly institutional investors and specialist operators, sometimes in partnership with housebuilders, and private investors on smaller schemes.
Does it need a different planning permission?
Usually not. The homes are normally the same use class as houses for sale, though the Section 106 agreement may reflect the rental tenure.
Does it suit small sites?
Large investors usually want a number of homes in one place, but smaller schemes can suit private investors or a sale to a local landlord.