BPF signs Build-to-Rent pledge

The British Property Federation (BPF) has signed a pledge on behalf of the Build-to-Rent sector to offer three-year tenancies and greater rental supply in line with the ambitions outlined in the government’s recent housing white paper.

The BPF and 20 of the Build-to-Rent’s key players - including Legal & General and Essential Living - published the pledge “to demonstrate the sector’s commitment to providing three-year tenancies and working with government to ensure the sector can play its part in rolling back 20 years of housing undersupply”. 

Housing minister Gavin Barwell said it was “great news” that BPF members had committed themselves to offering family-friendly three-year tenancies for renters in Build-to-Rent properties.

The BPF’s pledge says: “One of the benefits of the UK’s new Build-to-Rent sector is its ability to offer longer tenancies to its customers. We, the undersigned, therefore pledge to offer our customers the option of a three-year tenancy in any of our new build-to-rent buildings. Our customers will not be under any compulsion to take up this three-year tenancy option, and can still opt for shorter terms.

“To further assist customers with their budgeting, we pledge to review rents no more frequently than once a year or at the end of the initial term, and to set out clearly at the start of the tenancy the basis on which rents will be reviewed. Such tenancies will allow the tenant to break, after a short period of notice.”

Ian Fletcher, the BPF’s director of real estate policy, said: “The Build-to-Rent sector welcomes the government’s multi-tenure ambitions for the housing market, as outlined in the recent Housing White Paper, and this pledge underlines one of the many benefits of the sector to government and the sector’s customers.

“While many Build-to-Rent providers already offer longer tenancies, our aim is that three-year tenancies become a trademark of the sector.”

The 20 signatories are: