ALLIANCE WORKSTREAM – THE PLANNING ENVIRONMENT

The most important public policy issue that affects BtR is planning policy. As the sector has evolved, planning policy at local, regional and national level has also evolved to reflect the sector is different from building for sale.

The broad basis of this policy is set out in the National Planning Policy Framework (NPPF). It is where for planning purposes BtR and Affordable Private Rent are defined. The NPPF also explains that local councils should assess need for BtR and proactively plan for it.

How local authorities plan for BtR, and the more detailed considerations they should consider on specific developments, are set out in National Policy Practice Guidance (NPPG), notably in the Build to Rent-specific section.

For local council officers or members coming to BtR for the first time, there is a good introductory guide produced by London First, London Councils and Turley. This is focused on London but has some good introductory material on the sector generally.

BUILD TO RENT IN LOCAL PLANS

As we note above, Build-to-Rent has been acknowledged in National Planning Guidance since 2018, and before that in London, where the Greater London Authority now has specific London Plan policies.

Despite Build to Rent recognition in national planning policies since 2018, at a local level the situation is far from clear; despite BtR being present in over 200 local authorities, there is very little consistency across local plans throughout the UK.

Of the 19 largest cities and urban areas outside of London, only seven have local plans supportive of BtR. A lack of recognition and flexibility for BtR plans means that BtR schemes often have to provide rationale for departures from policies designed for ‘for sale’ schemes, which delays the development process.  

Current planning regimes are targeted towards to build-to-sell developments, which hinders the type of stock available on the market. Professionally managed BtR sites provide tenants with homes maintained to better quality and with greater amenity offerings, and this should be recognised within both national planning policy and local plans.

THE ALLIANCE’S WORK

To address the barriers that BtR faces within the planning system, the Alliance has created a subgroup focused on increasing local authority awareness and understanding of BtR, and advocating for consistent policy approaches. This includes:

  • Working with Government to support training of local planning committees on BtR; and
  • Research into the role of BtR in supporting the Government’s 1.5 million homes target, including exploring the investment potential of the market and how this can unlock delivery of homes at pace.

PLANNING ENVIRONMENT SUBGROUP MEMBERS

  • Avison Young
  • Global Apartment Advisors
  • Goodstone Living
  • Greystar
  • Lichfields
  • M&G
  • PriceHubble
  • Quintain
  • RBRE
  • Shared Voice