Planning consent delays for Build-to-Rent sites have increased 7% from the previous decade
According to new research from the British Property Federation the wait time on obtaining planning consent for Build-to-Rent sites is 12 months ‘at least’.
delays have increased from 7% (2014) – 40% (2023)
Delays were consistent despite development size and location, suggesting flaws in the application process.
Despite this challenge, the total number of Build-to-Rent homes completed in the UK stood at 100,300 units – an increase of 17% – and the number of Build-to-Rent homes with detailed permission in Q4 2023 was 58,000, the highest number on record.
The sector has also set itself a target of delivering 30,000 units per annum – a 10th of political targets of 300,000 homes a year.
Planning delays need to be resolved to meet housing targets
Ian Fletcher, director of policy, British Property Federation, comments:
“The Build-to-Rent market has grown significantly throughout the past decade. While reaching such a significant milestone (100,000 homes) for the sector is encouraging, we must ensure current challenges are temporary.
“Sentiment certainly is improving, and when interest rate cuts become real, rather than talked about, I would expect the sector to expand rapidly, given the strong pipeline of units that exist with planning permission.
“We lead an ambitious sector that delivers a great product. A target of 30,000 desperately needed rental homes a year is eminently doable, but it requires support.
“The research we are making available illustrates one of the structural challenges to the sector – time in planning is getting longer.
“Whilst we cannot say for certain what part of the planning process is leading to increased times, it is crucial to recognise that the more drawn out the development process, the longer it takes to get to an investor’s goal – income.
It does, therefore, matter a great deal and is a brake on the growth of the sector.”
