The recognised membership body for the BTR sector.  It publishes a Best Practice Guide for its members with a stated aim of supporting the BTR community, improving the way the sector does business "by sharing knowledge and de-risking the sector for investors, developers, operator and suppliers".

Requirements under the Renters' Rights Bill will mean that landlords can be penalised for discriminating against families – which may affect adverts or asking for a higher deposit/rent upfront.

Banning "rental bidding" will mean that the rent will have to be published when advertised and cannot be increased from that level in negotiation.

"Affordable private rent" is the affordable housing for the BTR sector.  Rent is based at 20% below market rent.

Does the accommodation have a gym, communal living space, a games room, a swimming pool, somewhere to watch movies?  The amenities offered impact on rents, operational logistics and costs, marketability, viewings and demand.  The higher the BTR spec the higher the likely amenity requirement.  Some argue that a multi family development that has no amenity is not truly a BTR scheme.

Currently, landlords can begin court proceedings under anti-social behaviour ground 14 immediately.  The Renters' Rights Bill will extend the rules and landlords will also be able to begin immediately proceedings which rely on Ground 7A, but a court won't be able to make an order until at least 14 days after the landlord has given notice to the tenant.

The current type of tenancy used for BTR schemes, introduced by the Housing Act 1988.  It is a fixed term tenancy and which is set to be abolished by the Renters' Rights Bill.

Awaab's Law will set out a clear timetable for investigation of potential hazards and timescales for the necessary repairs.  Terms implied into assured tenancies that the landlord will comply with the requirements.  Currently only relevant to social housing providers, the rules will be extended to the private rented sector by the Renters' Reform Bill (and we await a consultation on how this will work).

Purpose built, institutionally owned and professionally managed property rented on the open market.

The Building Safety Act 2022 impacts on the design, building, occupation and any refurbishment of higher risk buildings in England) (those at least 18m or with at least 7 storeys with at least 2 residential units).

What is the best brand to use for BTR?  Is it the company brand or one based on a building and locality?  BTR providers have mixed views on this.

Planning Use C3 class includes houses, flats and apartments.  There is no specific use class for BTR.

Industry slang for tenants who move on.  There is a debate around whether churn is good or bad for BTR.

Construction Industry Scheme whereby employers are required to withhold tax payable to contractors unless the contractor is registered under the Scheme.  Will potentially apply for contractors carrying our upgrade and maintenance work as well as the original construction.

Tenancies to corporate entities rather than individuals.  Less common than those to individuals but still entered into relatively regularly.

Based on the Ministry of Justice's statistics for England and Wales, in Q3 2024 the average (mean) time to complete a claim for repossession (from issuing the claim to obtaining possession) has increased to 37.8 weeks (or well over 8 months) and anecdotal evidence suggests a wide regional variety. We anticipate that the abolition of s21 pursuant to the Renters' Rights Bill will exacerbate these delays.

A great experience is vital for BTR operators  as tenants will research review sites for feedback. Reputation is key, along with providing the right amenities at the right price in the right place.  Monitoring and dealing with social media is an important part of the management process for BTR operators now.

Homes in the private rented sector will need to be kept to a particular standard but the detail of the new Decent Homes Standard is awaited (we have been promised a consultation "as soon as possible").  The current Decent Homes Standard only applies to the social rented sector.

24 months is the norm for residential developments.

Deposits from tenants must be protected in one of the government-approved tenancy deposit schemes.  After the implementation of the Renters' Rights Bill, the requirements will apply to assured tenancies.  The landlord must also give prescribed information to the tenant.

DMR is a type of non-regulated affordable housing which allows a lower rent to tenants who fulfil certain eligibility criteria (household income etc).  Rents are 20% below open market rent.

Must be given to the tenant (free) at the beginning of the tenancy.

Landlords can currently use a section 21 Housing Act 1988 notice to terminate an AST.  Following the implementation of the Renters' Rights Bill, landlords will need to give notice and make out one of the grounds for possession before getting a court order. A landlord must not evict a tenant without a court order.

The First-tier Tribunal of the Property Chamber Residential Property Division deals with applications relating to disputes over property and land.  This includes disputes over rent and service charges. The Renters' Rights Bill will allow tenants to refer disputes about rent to the First-tier Tribunal.

Must be given to the tenant on the grant of the tenancy and if not handed over can affect a landlord's ability to get possession orders.

General Data Protection Regulations.  Landlords and agents need to deal with tenants' data in accordance with the GDPR.  This includes rules around the way data is held, used and shared.  This is a key operational requirement when setting up a BTR platform.

In construction terms this is the first course of brickwork above ground level, or equivalent for other methods of construction. In tax terms there are advantages to transacting  after Golden Brick to ensure there are no VAT issues.

A building which is at least 18 metres in height or has at least 7 storeys.  If you are constructing HRBs there are significant obligations to deal with under the Building Safety Act.

Announced in October 2024 Budget, the Government has promised £3 billion of additional support for Small and Medium Enterprises and the BTR sector.  We await further details.

A government-produced booklet which must be given to the tenant at the beginning of the tenancy and a failure to do so can hinder a landlord's ability to gain possession of the property.

The legislation that governs ASTs and will still be relevant for tenancies pursuant to the Renters' Reform Bill when that comes into force.

Internal Rate of Return – the normal measure for returns made by investors in the BTR sector.

The make-up of the project company delivering BTR usually a provider/funder and developer. 

Key Performance Indicators  - a way of evaluating whether or not the standards a landlord is expecting are being met.  There will be KPIs in Property and Asset Management Agreements.

Not uncommon for there to be a requirement under a planning permission to review the appraisal and profitability of a built scheme.  May require a further payment to the local authority if the scheme is more profitable than expected.

The Renters' Rights Bill will introduce more landlord offences which will be enforced by local authorities.  The new burdens doctrine will apply and government funding is expected.  In addition, local authorities will be able to keep the penalties and fines which will incentivise them to be proactive in respect of policing the offences.

The rent that is payable for a property on the open market. The Renters' Rights Bill brings in certain obligations on the landlord as to the rent offered day 1. There is an ability to challenge a day 1 rent even though it was offered and agreed in what one would think is an open market scenario.

Minimum Energy Efficiency Standard. This prohibits landlords of both domestic and non-domestic property from granting leases or continuing to let "sub-standard" buildings and building units, being those with valid EPCs which have an energy performance rating of F or G, unless the landlord makes sufficient energy efficiency improvements to the property (so that it is no longer sub-standard) or can rely on one of the legitimate reasons set out in law not to do so. It only applies to properties that are required to have an EPC.

Micro locations are communities within larger areas which become trendy or desirable for residents.

Fixed term tenancies will be abolished by the Renters' Rights Bill.  The default tenure will be periodic assured tenancies, so the tenancy rolls until brought to an end by a court order or terminated by the tenant.  As currently drafted, there will be no minimum term and tenants will be able to give two months' notice to terminate the tenancy at any time including on Day 1. This proposal is concerning some central London operators as the concern is that it might inadvertently create a short term lettings market, increasing costs and churn.

Flats within a block let to multiple families (as opposed to houses occupied by one family – see Single Family Housing).

Various different tenures of housing in one development, build to sell, shared ownership, and BTR for example.

NHBC or equivalent latent defects insurance.  This is important for possible change of strategy to move to sale model if decide to do that rather than proceed with a rental mode in the future.

National Planning Policy Framework. This iscurrently under review by the Government but sets out land-use policy for England.

Discrimination against families with children will be an offence with penalties up to £7,000 (and criminal offences in Wales and Scotland).  These rules may change the way properties are advertised (but decisions on whether or not to rent to particular applicants can be made where the "conduct is a proportionate means of achieving a legitimate aim").

Company that manages the property normally pursuant to a lease from a Propco, which lease may also be a Golden Brick transaction.

One of the proposals of the Renters' Rights Bill is that there will be a landlord redress scheme operated by the Private Rented Sector Ombudsman.  This will give tenants another route where relationships with their landlords have fallen down.  It is likely that the current Housing Ombudsman (for the social rented sector) will take this role.

The Renters' Rights Bill will enable tenants to apply to the First-tier Tribunal to claim that their rent is not "open market". There is a concern that this could lead to spurious claims and with the Court Delays that are already causing issues in the industry this will only be exacerbated.

The costs of delivering BTR properties. Likely to increase to comply with the Renters' Rights Bill so it is important to factor in those compliance requirements as soon as possible.

What you are spending on facilities management, individual unit expenditure, tenancy changeover costs, lettings and management costs. Also, in future, compliance with the Renters' Rights Bill. Some say that OPEX should be monitored on a unit by unit basis as it is in PBSA to give a true picture of financial health.

When the Renters' Rights Bill becomes law, tenants will always be allowed to ask permission to keep pets and landlords will not be allowed to refuse permission unreasonably (so you won't be able to do a blanket "no pets" policy).  A landlord will be able to require pet insurance (and payment for that insurance will be a permitted payment under the Tenant Fees Act 2019).

For the BSA, the dutyholder who retains or is responsible for the repair of the structure and exterior of the building.  The PAP has duties once the building is occupied – for further details see our Insight here.

Under proposals in the Renters' Rights Bill, a PRS digital database will be set up - it will provide information for landlords, tenants, and local authorities. Landlords will need to sign up and won't be able to get possession if they haven't.

The company that owns the property and assets and will most likely (for tax reasons) grant a lease to an Opco to operate the Property.

Management agreements are negotiated between landlords and third party managers to set the scope of services and the standards required (Using KPIs to check that those standards are being achieved).  Will only be needed if the landlord doesn't manage the properties themselves.

High quality accommodation produces high demand and good returns.  It will be important to keep the accommodation well maintained using Property and Asset Management Agreements to set standards.

The Renters' Rights Bill amends Ground 8 of  the Housing Act 1988 which can be used to recover possession where there are rent arrears.  The length of time that there have been arrears is increased to three months (currently two).

This requires a landlord to repay rent if they commit one of the offences specified in legislation (including failure to comply with an improvement notice).

Currently in Parliament, a bill that is stated to overhaul the private rented sector and rebalance the relationship between landlords and tenants.  It is expected to come into force in Spring/Summer 2025.

The speed at which the landlord or manager deals with complaints from the tenants. It is crucial that maintenance is done quickly and efficiently.

An easement which can be acquired in various ways, but most frequently by long use.  If an adjoining owner enjoys a right of light and the development of the BTR will cause an actionable interference with that right, the adjoining owner might be entitled to an injunction which could result in the development needing to be scaled back.  In the alternative, the owner might be entitled to damages.

Compulsory checks may be required to make sure that a prospective tenant can legally rent the property.  Failure to complete the checks which leads to renting to someone without the right to be in the UK could lead to a fine or, in some circumstances, to a prison sentence.

After the implementation of the Renters' Rights Bill, where at least one tenant has no right to rent and the Secretary of State has notified the landlord, the landlord will be able to use of Ground 7B on 2 weeks' notice to recover possession.

Landlords can currently use section 21 (Housing Act 1988) to bring an assured shorthold tenancy to an end without any fault or breach on the part of the tenant.  This will be abolished by the Renters' Rights Bill and possession will need to be obtained using Section 8 (Housing Act 1988) and making out a valid ground for possession.

A planning agreement.

Houses which are each let to a single family as opposed to a block of flats.

A vital component of branding and selling BTR assets and also monitoring of social media is required to check up on ratings and concerns from residents.

BTR tenants expect a level of technology in their homes as standard.

Fees payable by the tenant are limited by statute.

50,000  BTR beds are under construction with a further 103,000 in the planning pipeline (figures from Savills UK Build to Rent Market Update Q3 2024 (25 October 2024) here).

Now known as ARL.

A lease of more than 21 years which is zero-rated for VAT purposes enabling recovery of VAT costs – must be done after Golden Brick.

See also NHBC valuations for BTR property tend to consider that the Property's underlying value would be for flats to sell on the open market. For that to be the case it would be expected that the units have the benefit of a Warranty Product. There are also some bespoke BTR products now on the market and there is an ability to think about building your own policy with an insurer.

Fridges, washing machines etc.  They are not considered  part of the Property at law so will be subject to irrecoverable VAT cost.

Needs to be good, fast and reliable.  Operators should build in price to maintain and have a rapid repair policy for any kit essential to telecoms reliability.

The Tenant experience is crucial.  They all want their accommodation to have the X Factor.  And that helps with demand.

Your returns on the investment into the property used by reference to rental income (gross) and rental income less costs and operating expenditure (net).

The UK has a 2050 net zero carbon target. There is beginning to be an awareness and expectation for BTR buildings to be "green".  This is reflected in the new designs for new accommodation.