BUILD TO RENT Navigating the Build to Rent Landscape: reflections and the road ahead

Alex McKinlay

Alex is the head of the public sector land team at Savills and provides development strategies and disposal advice to clients across the UK. With over 20 years’ experience in the public sector development market, Alex joined Savills in 2016 to operate across the UK business, working with London and regional teams to deliver procurement, agency and consultancy services to a wide range of public sector bodies. Alex is an expert in The Official Journal of the European Union (OJEU) procurement and sales, having led teams on many high profile projects, including the Olympic Park, and Chelsea Barracks. Other specialisms include developing workable overage clauses and the Charities Act.

Alex gives another slant on the role of BTR to increase housing options and emphasises that: “Build to Rent is more than a market segment, it’s a solution to one of the most pressing challenges of our time.” 

When I look back at the evolution of the UK housing market over the past decade, few sectors have demonstrated the resilience and adaptability of Build to Rent (BTR). During 2025, this segment moved away from being viewed as a niche to a cornerstone of housing delivery, shaping urban living and redefining investor priorities. Yet, at the close of Q3 2025, the numbers told a story of both progress and challenge. 

The first nine months of last year saw £2.6bn invested into BTR, mirroring the performance of 2023 and 2024. But here’s the catch: nearly half of the year’s total investment needed to land in Q4 if it was to surpass the £5bn benchmark of 2024. This reliance on a strong final quarter has become a pattern - three of the previous four years have seen Q4 dominate the investment landscape. It’s a reminder that while confidence in BTR remains strong, timing and momentum are everything. 

A new era for renters and investors 

Perhaps the most significant development during the third quarter of 2025 was legislative. In England, the Renters’ Rights Bill - hailed as the biggest change to the private rented sector in nearly 40 years - finally received Royal Assent at the end of October. For investors, this was more than a headline; it was a signal of stability and clarity after months of speculation. Yes, administrative hurdles remain, but the certainty this bill brings cannot be overstated. 

Meanwhile, north of the border, Scotland has taken a decisive step to exempt BTR from rent control measures. For those of us who watched investor sentiment evaporate during the emergency rent cap era (September 2022 to April 2025), this is a welcome reversal. Back then, uncertainty drove many investors out, and the impact was stark: annual BTR home starts fell by 65%, from over 1,300 homes to fewer than 500. 

Scotland’s fundamentals: why confidence will return 

The fundamentals in Scotland’s major cities remain compelling. Glasgow, with its 73,575-strong student population and a graduate retention rate of 31%, offers a deep pool of rental demand. Edinburgh, on the other hand, boasts one of the most productive workforces in the UK, second only to London in terms of gross value added per worker. These are not just statistics; they’re indicators of long-term viability. 

The exemption of BTR from rent controls is a strategic move that acknowledges the role private investment plays in housing delivery. It’s a lesson in collaboration: regulation must work with the market, not against it. Certainty will bring capital back, and when it does, Scotland’s pipeline - once brimming with potential - can begin to flow again. 

Development challenges: the pipeline problem 

Across the UK, BTR stock now stands at over 139,000 completed homes, a 14% increase year-on-year. Add to that, 52,500 homes under construction and 106,500 in planning, and the sector’s footprint looks impressive. But dig deeper, and a more nuanced picture emerges. 

For seven consecutive quarters up to the end of Q3 2025, starts have lagged completions. In London, the situation is particularly acute: homes under construction have fallen by 29%, compared to just 5% outside the capital. This slowdown isn’t about demand, it’s about delivery. Planning permissions typically last three years, and with 64,000 consented homes sitting idle, the challenge is clear: we need mechanisms to convert consents into starts. 

Unlocking growth through collaboration 

The backlog of consents represents a significant opportunity for investors, especially those unwilling to take planning risk. Funding strategies that unlock these sites could be transformative, not just for developers, but for the communities waiting for these homes. 

Housing has risen up the political agenda, and that’s a positive sign. But striking the right balance between support and regulation is critical. Scotland’s experience with rent control is a cautionary tale: well-intentioned policies can have unintended consequences if they fail to engage with market realities. 

Conclusion: a call to action 

It is crucial that confidence translates into capital and policy continues to support delivery. For me, the message is simple: collaboration is not optional; it’s essential. Public and private sectors must work hand in hand to create an environment where investment thrives and housing need is met. 

Build to Rent is more than a market segment, it’s a solution to one of the most pressing challenges of our time. And as we look to 2026 and beyond, the question isn’t whether BTR will grow - it’s how fast, and how well, we can make it happen.