While major construction companies have historically dominated BTR delivery, there is a rising demand from medium-sized property developers.

They seek to contribute to institutional-grade mid-size BTR schemes, shifting away from the build-to-order model and embracing a more holistic approach that encompasses the entire lifecycle of BTR projects.

At Paragon Bank, our proposition aligns with supporting BTR schemes across the UK, from site acquisition to development, letting, and short-term stabilisation.

We are committed to assisting developers in capitalising on the potential growth in the rental market throughout the development term, allowing them to manage and operate the scheme post-completion — a departure from the traditional fixed-price build-to-order model.

Why are we entering this market?

Quite simply, demand.

Our clients have been asking for this product and we are evolving to meet their needs. 

In embracing BTR, we recognise its role as complementary to the commendable efforts of private landlords within the PRS.

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While BTR currently constitutes less than 1% of privately rented homes, it undeniably has a pivotal role in diversifying the offerings within the PRS.

In a time when tenant demand surpasses supply, and there's a pressing need for more rental homes, BTR emerges as a crucial player.

Initially proven successful in London, BTR concepts are now being applied in towns and cities across the UK.

By the second quarter of this year, completed units in regional markets surpassed those in the capital, marking a significant shift.

Moreover, BTR is not confined to major economic hubs — clusters of BTR schemes are emerging in smaller towns and cities, including Norwich, Southampton, Leicester, and Peterborough.

The evolving landscape of BTR stock is notable, with a widening target demographic beyond young professionals to include the single-family housing sector, which now constitutes 12% of all BTR homes.

As institutional investment for BTR gains momentum and tenant demand rises, we eagerly anticipate collaborating with our clients as they bring BTR schemes to market.

In doing so, we contribute to the evolution of the housing landscape, embracing innovation and responding to the dynamic needs of the rental market.