Unlocking urban sites through BTR
The UK has been dealing with a prolonged housing crisis for several decades, marked by a persistent shortage of affordable housing for individuals and families. The crisis has meant that climbing onto the property ladder has become increasingly unattainable for many, pushing more would-be-buyers into the rental market. Currently, around 5 million households rent privately, a figure that continues to rise as homeownership remains elusive. This growing demand for rental housing underscores the need for an innovative approach that can enhance both choice and quality within the sector.
By their nature, the most sustainably located sites within our towns and cities are often previously developed, brownfield land, which benefits from proximity to transport hubs, services and amenities. As such, brownfield land holds considerable potential for addressing the housing crisis. However, the complexities associated with bringing forward these sites, including financial viability, remediation, environmental concerns, and community opposition, present formidable barriers to development.
For these reasons, the re-development of brownfield sites is often fraught with challenges. Contamination from previous industrial use and their remediation are often prohibitively expensive. Urban sites must also balance heritage, townscape and environmental considerations which can hold up development. As a result, the financial viability of such projects is an important consideration, as initial capital outlays are significantly higher compared to greenfield developments. Furthermore, recent legislation surrounding biodiversity net gain (BNG) and building safety has added layers of complexity to the viability calculations for brownfield developments. As a result, many previously developed sites take significant time to bring forward.
However, the Build to Rent (BTR) sector has emerged as a game-changer in the housing market. BTR developments are specifically designed for the rental market, enabling more effective and targeted investments in residential development that meet diverse housing needs. By unlocking the potential of brownfield sites, BTR can effectively contribute to addressing the housing crisis, while supporting local economies and urban regeneration.
By embracing BTR as a preferred development model on brownfield land, the Government has an opportunity to provide clear guidance on its acceptability to stimulate regeneration and unlock brownfield development. For instance, the Government’s recent announcement regarding Brownfield Passports is a positive step, offering clarity on what can be developed. However, this initiative could be further enhanced by encouraging BTR housing as a preferred use on previously developed land, thereby stimulating development through increased confidence among investors.
BTR’s capacity for higher-density development, particularly on sustainably located brownfield sites near transport hubs, is critical. This approach not only optimises land use, but also underscores a commitment to sustainability, as these locations inherently reduce reliance on cars and promote the use of public transport. BTR model’s capacity for generating stable, long-term rental income makes it especially appealing to investors, fostering a financial landscape conducive to brownfield revival.
Moreover, BTR’s features lend themselves to placemaking and urban design. By actively involving local authorities and communities in the planning process, BTR can create mixed-use developments that cater to diverse demographics, thereby enhancing community cohesion and diminishing the local community’s concerns about gentrification.
Another strength of BTR is the emphasis on sustainability and placemaking. These projects can prioritise eco-friendly design and practices, ensuring minimal environmental impact while also playing a significant role in land remediation efforts. As BTR developments can accommodate large numbers of people into a local area, they are very effective at generating activity and stimulating secondary investment in local communities. This not only improves the quality of the surrounding area but contributes to a sense of community cohesion among residents.
The BTR sector holds transformative potential for unlocking regeneration opportunities on brownfield sites across the UK. By helping to overcoming financial barriers, expediting development processes, and prioritising sustainable practices, BTR can play a crucial role in reshaping urban landscapes into vibrant, liveable communities.