The government is to consult on making build to rent a formal part of the National Planning Policy Framework under guidance issued in the Housing White Paper today.
It will consult on changing the NPPF to allow authorities to use affordable rent for affordable housing provision, and to encourage them to plan proactively for BTR developments.
It said its key proposals were to:
• Change the National Planning Policy Framework so authorities know they should plan proactively for Build to Rent where there is a need, and to make it easier for Build to Rent developers to offer affordable private rental homes instead of other types of affordable housing
• Ensure family-friendly tenancies of three or more years are available for those tenants that want them on schemes that benefit from the changes.
In his statement to parliament, communities and local government secretary Sajid Javid said: “We will encourage institutional investment in the private rented sector.”
But, he added: “We will tackle the scourge of unfair leasehold terms, which are too often forced onto hard-pressed homebuyers.
“And we will be working with the rental sector to promote three-year tenancy agreements, giving families the security they need to put down roots in their community.”
The focus on rental is part of a new push on diversifying methods of housebuilding.
Grainger chief executive Helen Gordon explains what the insertion of build to rent into national planning policy will mean for the sector.