Exploring London's Build to Rent Boom: A Policy Perspective

Image credits: Danist Soh / Unsplash

The Build to Rent (BtR) sector in London has been experiencing a significant boom in recent years. This surge in investment and demand has led to an increase in planning permissions, but how has planning policy responded to this growth, and how can it guide this rapidly evolving market?

Lichfields, a leading planning and development consultancy, conducted original research to explore these questions. Their report provides a comprehensive overview of the planning position within London, analysing policy at the Greater London Authority (GLA) and individual borough levels.

The study revealed that there is a stark inconsistency in how BtR is addressed in Local Plan policy across London. Surprisingly, 46% of the 35 local planning authorities in London make no reference to BtR within their emerging or adopted Local Plans. This figure increases to 54% if the three authorities which make reference to the private rented sector (PRS), as opposed to BtR, are included.

Interestingly, the research found an emerging correlation between those authorities which support BtR and the number of schemes being brought forward. Conversely, those authorities which resist BtR in policy terms are seeing fewer BtR developments. However, planning is only one consideration in the pattern of BtR development activity. Wider political, economic, and social reasons also impact delivery.

The report concluded that good quality BtR development in the right location plays a crucial role in meeting London’s housing need and strengthening its communities. However, local policy and the planning process could do more to facilitate and encourage the sector’s ongoing growth.

The BtR sector's growth in London presents both opportunities and challenges. Understanding the interplay between planning policy and BtR developments is key to navigating this dynamic landscape. As the sector continues to evolve, so too must planning policy, ensuring it effectively guides and supports this important contributor to London's housing landscape.

LINK TO MAIN ARTICLE: The application of Build to Rent policy in London (lichfields.uk)