Glossary definition
Build to Rent (BTR)
Purpose-built residential accommodation designed specifically for the private rental market rather than individual sale, typically held as a single investment by an institutional owner. BTR schemes often benefit from accelerated planning support under NPPF guidance and may qualify for reduced affordable housing contributions where a minimum 20% discount market rent is provided.
Definition
Purpose-built residential accommodation designed specifically for the private rental market rather than individual sale, typically held as a single investment by an institutional owner. BTR schemes often benefit from accelerated planning support under NPPF guidance and may qualify for reduced affordable housing contributions where a minimum 20% discount market rent is provided. Funding for BTR developments increasingly comes through forward-funding arrangements with institutional investors alongside traditional development finance.
See also
Closely related terms.
Forward Funding
An arrangement where an institutional investor acquires a development site and funds the construction costs directly, with the developer retained under a development agreement to deliver the scheme.
ERV (Estimated Rental Value)
The annual rent that a property is expected to achieve on the open market, as assessed by a RICS-qualified valuer.
Gross Yield
The annual rental income from a property expressed as a percentage of its purchase price or market value, before deducting any expenses.
Net Yield
The annual rental income from a property expressed as a percentage of its purchase price or market value, after deducting all operating expenses such as management fees, maintenance, insurance, and void periods.
Cap Rate (Capitalisation Rate)
The ratio of a property's net operating income to its current market value, expressed as a percentage and used to value income-producing assets.
Further reading
Guides that touch this term.
Guide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
UK Development Finance Market 2026: Rates, Trends and Outlook
A comprehensive overview of the UK development finance market in 2026, covering current interest rates, lender appetite, emerging trends, and what developers should expect over the coming 12 months.
9 min read readReadGuide
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readRead
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