English cities, particularly those that expanded during the Industrial Revolution, often display lower density and a comparative lack of flats than their European counterparts. The private rental sector is fragmented, primarily consisting of small landlords who may treat property ownership as a secondary career. In recent years, however, significant investments have been directed towards high-rise apartment blocks through “build-to-rent” developments. This trend has been particularly notable in urban areas like Manchester and London, where approximately 14,000 new homes have been added annually since 2020.
The Labour government aims to construct 1.5 million homes, viewing the growth of the build-to-rent sector as a beneficial development. Clive Betts, an MP and chair of a taskforce on build-to-rent, has referred to these projects as “good-quality housing.” Despite this optimism, housing researcher Adam Almeida’s findings suggest a different reality: rental prices have surged by 48% to 52% in certain London boroughs with significant build-to-rent activity, surpassing overall city averages.
Government interest in build-to-rent projects has roots in a desire to stimulate housing development without heavy public spending. A 2012 review indicated that such models were already successful in other contexts, but evidence regarding their impact on affordability is mixed. Cities in Europe have reported that large investors may exacerbate housing crises, raising concerns about the affordability of newly built student housing in the UK as well.
While proponents assert that these developments offer enhanced services and amenities, community sentiment indicates a stronger craving for affordability over luxury. Polling data shows widespread support for rent control among the public, although such measures may conflict with investor interests. Labour’s housing strategies, which still rely on private investment, might compromise true affordability, particularly as the legacy of past policy actions continues to affect the availability of genuinely affordable housing options. As local authorities are constrained in their ability to build cost-effective social housing, many renters may continue to face financial pressure.
Source: https://www.theguardian.com/commentisfree/2025/aug/24/the-guardian-view-on-build-to-rent-hardly-a-solution-to-the-housing-crisis