We recently joined forces with Global Apartment Advisors to host a high-profile Build-to-Rent (BTR) leaders forum at our London office.
Bringing together Global Apartment Advisors’ strategic expertise and C-suite insights into living sector investments alongside our specialist comprehensive residential development offering, including BTR, the strategic networking event sparked an insightful and wide-ranging conversation about the future of the BTR sector.
More than 60 leading professionals – including developers, investors and asset managers – gathered to discuss the challenges facing the sector, spotlight emerging opportunities and review key regulatory changes on the horizon. Guests then enjoyed an evening of networking, canapés and drinks, accompanied by a band, on the balcony in front of spectacular panoramic views of St Paul’s Cathedral.
Speakers: A look ahead at the BTR market
Attendees were welcomed by David Woodward – CEO at Global Apartment Advisors and CompassRock International, Andy Wilson – partner and national head of residential development at Gateley Legal and Shaz Sharif – residential development partner at Gateley Legal.
Andy and Shaz delivered a legal horizon scanning session, emphasising that the second half of 2025 is set to be impactful in terms of updates and considerations for developers – one of which being the Building Safety Act 2022 and its wide-reaching consequences. This includes the £3.4bn Building Safety Levy (the Levy) fund to contribute to the remediation of building safety defects over the next decade. The Government issued a technical consultation response in March which gave some additional insight into how the Levy will work when it comes into effect in autumn 2026.
“Of particular interest is the Government’s conclusion that the BTR sector will not be exempt from payment of the Levy,” explained Shaz. She added: “We won’t know any firm specifics until we see the regulations later this year; however, the consultation gives us an idea of how the Levy is going to work in practice with the rate payable on a site applied per square metre of chargeable floorspace. There is a different rate applied for previously developed land (including brownfield land) and non-previously developed land, with brownfield land being at a rate which is approximately 50 per cent lower per square metre compared to land which has not been previously developed.”
Andy added: “Even though the Levy isn’t coming into effect until late next year, it will increasingly become a consideration in the site appraisal process as part of deal formulation, particularly as the industry adjusts to this introduction. It’s definitely something that the BTR sector needs to be keeping an eye on as the regulations are introduced.”
Following the horizon scan, Dawn Reynolds, partner and national head of real estate dispute resolution at Gateley Legal, provided an overview of the Renters’ Rights Bill and its potential impact on the BTR sector. Expected to become law from early autumn onwards, the Renters’ Rights Bill is set to bring significant transformation to the private rented sector. Although these changes may pose challenges for some landlords, they also present a timely opportunity for BTR providers to step in and scale up to meet the country’s demand for high-quality rental homes.
While the Bill is still progressing through Parliament, BTR providers should familiarise themselves with the impending changes. These include the abolition of fixed term tenancies and Section 21 ‘no-fault’ evictions, a new legal right for tenants to keep pets and stricter rent review rules. The Bill will introduce industry wide changes which will significantly transform the private rented sector, and BTR providers should monitor developments closely and stay proactive to ensure compliance.
In addition to legal updates, Adrian Gladstone, director within the building consultancy team at Gateley Vinden discussed the Building Safety Regulator (BSR) and its impact on the BTR sector. Created by the Building Safety Act 2022 to oversee building safety in England, in particular Higher-Risk Buildings which have at least seven storeys or are at least 18m in height and contain at least two dwellings, a large majority of BTR real estate falls into its scope. However, as widely covered in the press, there is growing industry discontent with the Gateway processes – particularly Gateway 2 and partially Gateway 3 – with complaints relating to the slow speed of processing applications, and the unpredictability and inconsistency of outcomes. The risks for BTR schemes as a result of reported issues with the Gateway processes are twofold. Firstly, the hard stops of the Gateway processes can cause delays and considerable costs as a result of unproductive time. Secondly, when running and managing the schemes, any repairs and alterations required over time which involve controlled work will need to go through the Gateway process – be it fire door replacements, fire alarm adjustments or insurance claims following fire or escape of water.
According to data obtained by specialist construction consultancy Cast, via a freedom of information request, Gateway 2 had less than an 11 per cent success rate for new build submission approvals as of the end of May 2025, with the average estimated cost of BSR fees approaching £30,000, and a less than 20 per cent success rate for work on existing schemes with an estimated average cost of £6,000. Additionally, for Gateway 3 there were zero submission approvals for new build schemes and a less than 19 per cent success rate for work on existing schemes. The BSR attributes much of the blame for this on poor applications; however, the House of Lords Industry and Regulators Committee has launched an inquiry which signifies that positive change is on the horizon. The Minister for Building Safety, Alex Norris, has announced that the BSR has moved from the Health and Safety Executive to a dedicated board within the Ministry of Housing, Communities, and Local Government. Alongside this, a package of reforms has been announced, including a new ‘fast track’ system for applications, as well as more skilled resource being brought into the BSR.
Adrian concluded: “Although this might not be a quick fix given the skills shortage within the industry, it’s clear that the BSR appears to be very much focused on taking away blockers to meet the Government’s 1.5m new homes target which can only be a good thing for the BTR sector.”
After presentations from our speakers, David Woodward, CEO at Global Apartment Advisors, provided an overview of the global BTR market and some of the international examples he believes may have an influence on future trends in the UK, including the introduction of more suburban, low-rise garden-style developments which could circumnavigate viability and planning challenges we are currently facing.
Dominic Martin, managing director at Global Apartment Advisors, went on to talk through some of the recent and upcoming policy changes for the sector and what impact this could have on investors and operators. Dominic also highlighted the importance of net operating income (NOI) as a key KPI and explained how Global Apartment Advisors apply a particular focus on NOI to boost the value and efficiency of their clients’ assets.
Finally, guests heard from James Pargeter, senior advisor at Global Apartment Advisors and project board member at BTR Alliance, who provided an update on the newly formed BTR Alliance and their objective to improve the general understanding of how BTR addresses wider housing needs, enhance how the sector is perceived, and enabling more quality rental homes to be delivered more quickly for everyone who needs them, reinforcing a regular quote of his, “Everyone rents at some time during their lives – BTR enables them to rent well.”
A BTR time capsule: what does the next 12 months hold?
Attendees were invited to make predictions for the BTR sector over the next 12 months, which were placed inside a ‘time capsule’ box to be re-opened at next year’s event. Early insights and common themes from the predictions box included:
- A shift away from high-rise BTR schemes due to obligations under the Building Safety Act 2022.
- Growing interest in ‘garden-style’ communities, inspired by successful models in the US.
- Strategic commercialisation of amenities – e.g. opening co-working spaces and gyms to the wider community for a fee.
- A move toward lower-amenity, more affordable BTR developments, focused on delivering essential, high-quality homes without the high costs of extensive on-site facilities.
- Accelerated growth in co-living, driven by students, young professionals, and digital nomads seeking flexibility, affordability, and community.
- Continued investment momentum in the single-family housing sector.
The event wrapped up with an engaging question and answer session for the speakers. The BSR Gateways continued to be a hot topic, with some sharing optimism that the Gateway 2 issues would be resolved and others expecting the process to be forced to be markedly changed as all developers and constructors are suffering unsustainable delays and cost as a result.
