Once a nascent, alternative form of property investment, build to rent (BTR) has now reached maturity. It not only matches but exceeds many benefits offered by other forms of investment.

Andrew Jones is group director of corporate sales, lettings and BTR at LRG

With the total number of completed homes having now surpassed 139,132 (14% growth in the past year alone, according to British Property Federation stats), BTR is now a recognised sector in its own right. Furthermore, it is attracting a growing base of institutional investors.

Unsurprisingly, BTR is now an important part of the housebuilding mix in large cities, making up 14% of new accommodation, according to Centre for Cities, and is set to have a key role in the government’s 12 new towns.

In a broader economic market characterised by volatility – whether economic, political or environmental – investors seeking security are finding it in BTR. This is the result of its evolution from a predominantly urban, apartment-based model into a more diverse and family-oriented suburban product.

The single-family housing (SFH) model translates the most successful features of traditional BTR – service, flexibility and professional management – into a form more aligned with the needs of families. It favours houses over flats, outdoor space over shared lounges and locations beyond the city core. It is a lifestyle-driven product that appeals to maturing millennials, growing families and the rising cohort of ‘comfortable renters’: people with means who prefer flexibility to ownership.

Professionalising the PRS

At the same time, the private rented sector (PRS) is undergoing structural change due to rising regulation and policy reform – most notably through the Renters’ Rights Act. Tenant demand continues to rise and there remains a shortage of available properties to rent. In our own experience across all LRG brands, we’ve seen this trend mirrored nationally.

In a market characterised by volatility, investors seeking security are finding it in BTR

This shift creates an opening for corporate landlords to step in and meet the demand – and BTR is well positioned to do so. With higher-quality homes, integrated services and long-term management, BTR schemes meet the needs of today’s renters and regulators alike.

Stability, scalability and service

For investors, suburban BTR communities offer a unique mix of characteristics: consistent demand, strong yields, ESG credentials and an aggregated asset structure that delivers scale. The model’s flexibility – allowing for portfolios to include residential, retail and leisure units – supports both short-term returns and long-term value.

At LRG, we’ve seen heightened interest from institutional investors, including those shifting away from traditional commercial and retail assets. Our national footprint and depth of local market knowledge enable us to support clients in assembling and expanding tailored portfolios, often starting with one-off suburban homes and growing to form cohesive communities.

Sustainability and social responsibility are high on the agenda for institutional investors. The suburban BTR model enables energy-efficient infrastructure, from heat networks to sustainable transport. It also offers an opportunity to deliver measurable social value: family housing, long-term tenure and community-focused services.

There is also considerable potential for suburban BTR communities to evolve in form and function. Schemes may integrate later-living homes, affordable housing or social infrastructure such as schools and surgeries. Developers increasingly blend tenures across larger sites to spread risk and accelerate delivery, with BTR often playing a pivotal role in enabling placemaking and early revenue generation.

According to the Association for Rental Living Manifesto 2025-26, BTR has the potential to deliver up to two million additional, high-quality homes and unlock an extraordinary £300bn in long-term investment for the UK economy.

This is prompted by strong and growing demand, favourable regulation, proven investor appetite and a product that delivers for both occupiers and funders.

In uncertain times, few sectors can offer the same combination of yield, security and scalability. That is why, as an investment class, BTR – and particularly suburban BTR communities – stands out as the most sustainable and secure choice in the current market.

Andrew Jones is group director of corporate sales, lettings and BTR at LRG