Can build to rent developments deliver stronger communities?

By Matthew Morgan, co-founder and director

In cities across the UK, the build-to-rent (BTR) sector is beginning to reshape the way we think about rental housing. Offering professionally managed, high-quality homes with amenities designed to foster a sense of community, BTR developments promise more than just a place to live. They offer the potential to enhance residents’ quality of life and contribute positively to the wider neighbourhood.

Our recent report on the social impact of BTR developments provides valuable insights into how these schemes are seeking to deliver on their promises. Our report evaluates the role of BTR in creating cohesive communities, offering a unique opportunity to explore how these developments might benefit both residents and the wider neighbourhoods they inhabit.

Fostering community and connection

At their best, BTR developments demonstrate the value of designing with community in mind. Features like shared lounges, gyms, and coworking spaces are more than just conveniences; they are deliberate attempts to encourage interaction and build a sense of belonging among residents.

In many cases, this approach works. According to our research, residents often report feeling more connected to their neighbours compared to other forms of housing. This evidence, gathered through direct engagement with residents and wider community members, highlights the potential of BTR developments to foster a stronger sense of community and improve social outcomes.

Yet, the question remains: how well do these developments integrate with the wider community? While BTR schemes may excel at fostering connection within their walls, the findings of the report indicate that they also contribute positively to wider community cohesion. In fact, 71% of residents agreed that their local area is a place where people from different backgrounds get on well together, with 68% of the wider community sharing this sentiment. Moreover, almost 58% of the wider community whom we surveyed had taken part in events at BTR developments.

It’s crucial that these developments don’t become isolated enclaves though, which without careful planning and management they could. For BTR to achieve its full potential, developers must continue prioritising integration with the wider area, ensuring spaces are accessible and welcoming to all, and reinforcing positive community connections through both green and social infrastructure.

The challenge of affordability

One of the most significant challenges facing the BTR sector – and the UK housing market as a whole – is affordability. The demographic profile of the BTR residents who took part in our research skewed towards higher earners; nearly 65% of respondents had a household annual income over £50,000 annually. This raises important questions about who these developments are for and how they can cater to a broader range of income levels.

Some BTR schemes include affordable housing, developed in partnership with local authorities or housing associations. However, these initiatives vary widely, and more can be done to ensure that BTR developments are accessible to a diverse range of people. Addressing this issue is not just about meeting demand, it’s about ensuring that the benefits of BTR are shared equitably. For BTR to become a truly sustainable part of the housing market, its affordability model must be expanded to ensure that a broad demographic can benefit from the improved quality of life that BTR communities can offer.

Prioritising wellbeing

Beyond affordability, BTR developments offer valuable lessons about how housing can support health and wellbeing. Many schemes include high-quality play spaces, green areas, and well-designed homes that promote comfort and sustainability. These elements are not just “nice-to-have” features – they are critical to creating environments where people can thrive.  Research has shown that access to green space, for example, can have a positive impact on both mental and physical health, contributing to reduced stress and increased social interaction.

But there are areas for improvement. For instance, residents in some developments expressed concerns about thermal comfort, particularly when it comes to keeping homes cool during the summer months. As temperatures rise and heatwaves become more frequent, many residents reported difficulties in maintaining a comfortable temperature inside their homes. With rising energy costs and growing awareness of the environmental impact of poorly designed buildings, developers must address these issues. Ensuring that BTR homes are not only energy-efficient but also capable of staying cool during warmer months is crucial, both for meeting residents’ expectations and for supporting broader sustainability goals.

A role in addressing the housing crisis

It’s important to acknowledge that BTR is not a silver bullet for the UK’s housing crisis. No single housing model can address the scale and complexity of the challenges we face. However, BTR can play a crucial role in creating a more diverse and resilient housing market.

By providing high-quality rental homes that prioritise service, security, and community, BTR developments can complement other housing solutions, such as social housing, homes for sale, and community-led initiatives. Together, these approaches can begin to address the interconnected issues of housing availability, quality, and affordability.

Looking ahead

The BTR sector is still relatively new, and there is significant potential for growth and evolution. Developers and operators must continue to learn from the lived experiences of residents, refining their designs and operations to maximise social value.

Equally, the sector must focus on building partnerships – with local authorities, housing associations, and community organisations – to ensure that its developments are not just places to live but also assets to the wider community.

As we look to the future, one thing is clear: housing is about more than bricks and mortar. It’s about creating homes and neighbourhoods where people feel connected, safe, and supported. The BTR sector has shown that it can deliver on these aspirations, but the work is far from done.

By embracing a collaborative, resident-focused approach, BTR can show the rest of the industry how to build not just better homes, but better communities. And in a time when the UK faces both a housing and a wellbeing crisis, that’s an ambition worth pursuing.