Build-to-rent (BTR) has become one of the UK’s fastest growing property markets, fuelled by substantial foreign investment and strong demand for high-quality rental homes.
BTR developments currently account for about one in five new homes nationwide, rising to almost 30% in London. This surge has been driven largely by overseas investors who see BTR as a stable, long-term investment with reliable rental income.
A key advantage of BTR is the speed at which new homes can be brought to market. Unlike traditional housebuilding, which can take years to complete and sell, BTR homes can be advertised and let to tenants within months. Early occupancy encourages local businesses such as shops, schools, and surgeries to set up sooner, fostering lively communities from the outset.
Although BTR often caters to couples, flat-sharers, and single professionals, an increasing number of families are now taking advantage of the sector too. Many developers offer well-managed, modern homes in suburban areas, giving tenants better living standards than older rental properties. For foreign investors, BTR remains attractive because their home markets already recognise the benefits of large, institution-backed rental sectors.
However, some concerns persist. Critics have pointed out that a high proportion of BTR properties remains geared towards households with above-average incomes, potentially leaving families with lower budgets at a disadvantage. There are also worries that institutional landlords might prioritise profit by “drip-feeding” new properties onto the market, potentially impacting affordability in certain areas. Additionally, because entire developments are often owned by a single corporation or consortium rather than individual homeowners, there is a risk that local communities may feel less engaged in decisions about how these properties are run.
While The Bridging Group does not currently specialise specifically in bridging finance for BTR developments, we do provide bespoke solutions for foreign or non-domiciled (non-dom) investors with ties to England and Wales. Our services focus on supplementary finance such as development exit and cashflow loans, helping investors to bridge financial gaps when moving from one development phase to another.
As foreign investment continues to play a vital role in the property sector, we remain committed to supporting non-dom investors with reliable, straightforward financing solutions. By combining swift approval times with personalised guidance, we can help ensure that overseas clients can realise their investment goals and contribute to the UK’s evolving housing landscape, all while being mindful of the concerns around affordability and inclusivity that accompany this rapidly expanding sector.