Exploring Build to Rent Trends Shaping 2025
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- 14th Jan 25
As we head into 2025, the Build to Rent sector is shaping up to play a pivotal role in the UK’s private rented sector. With regulatory changes on the horizon and growing institutional investment, Anne-Marie Brown, Founder of Love to Rent examines how this sector is well-positioned to meet the demand for quality, professionally managed rental housing in 2025. In this blog, we look at the likely trends for Build to Rent in the coming year, with a focus on sustainability, affordability, and the evolving legislative landscape.
Regulatory Changes
The Renters’ Rights Bill, expected to come into force as early as spring 2025, is set to be a game-changer for the PRS. Key provisions include:
- Overhauling tenancy agreements.
- Abolishing Section 21 ‘no-fault’ evictions.
- Revising Section 8 grounds for repossession.
- Introducing a landlord register and an Ombudsman scheme.
While these changes aim to enhance renters’ rights and improve housing standards, they could also lead to unintended consequences. Some landlords may exit the market due to increased regulation, while others might be deterred by the 2% rise in higher-rate stamp duty. This could reduce the supply of rental properties, potentially making it harder to find a home. The Build to Rent market is perfectly positioned to pick up the shortfall in property availability. With its professionally managed developments, purpose-built homes, and focus on amenities, Build to Rent provides the quality, security, and lifestyle customers increasingly expect in a competitive market.
A Growing Role in the PRS
Institutional investment in Build to Rent developments has surged in recent years and it has already emerged as a key solution to the PRS’s supply-and-demand crisis. According to the British Property Federation, completed Build to Rent units have grown by 23% in the past year, with over 120,000 homes now available and a pipeline of more than 273,700 in development. This rapid growth reflects the sector’s ability to address the PRS supply-and-demand imbalance and we expect to see more of this in the coming years.
Sustainability in Focus
As environmental concerns become more pressing, sustainability is taking centre stage in Build to Rentdevelopments. Investors and developers are prioritising energy efficiency, renewable energy integration, and eco-friendly building materials. From solar panels to smart home technology that reduces energy consumption, Build to Rent properties are increasingly designed to meet stringent environmental standards.
But it’s not just in the more obvious ways in which Build to Rent homes are meeting the green agenda. At Love to Rent, we are hearing more about groundbreaking features such as the integration of flexible walls, allowing residents to adapt their living spaces to meet changing needs. Build to Rent developments already offer adaptable spaces, so we look forward to seeing how this plays out in the future.
At the moment, many developments include eco-friendly features like green roofs, community gardens and even urban farming areas, enabling residents to grow their own produce and connect with nature.
Affordability and Accessibility
Affordability remains a key consideration for Build to Rent developers. While Build to Rent units can include premium amenities, this is certainly not the only offering with the sector addressing the need for accessible pricing. By offering flexible pricing structures and diverse home sizes, Build to Rent developments cater to a broad demographic, from young professionals to families and retirees. This adaptability ensures that Build to Rent housing remains a viable option for customers across income levels.
Diversification of Offerings
The Build to Rent sector is expanding its offerings and in 2025, we can expect continued growth in single-family housing (SFH) and co-living spaces, which cater to diverse demographics. These alternatives address different lifestyle needs, from young professionals seeking community-focused living to families looking for suburban rentals with professional management surrounded by good amenities and schools.
Renting as a Lifestyle Choice
Renting is increasingly being seen as a flexible, convenient lifestyle choice rather than a temporary solution. With evolving attitudes towards work, mobility, and housing preferences, many people are prioritising the freedom and flexibility that renting offers. As a result, Build to Rent is expected to see significant growth in 2025, offering high-quality, well-located homes with a range of services and amenities tailored to modern living.