Affordable Housing in Build to Rent: The Case for Mixed-Tenure Projects

The Build to Rent (BTR) sector has seen significant growth, providing high-quality rental homes with tailored amenities. However, the integration of affordable housing into these developments presents a valuable opportunity to create diverse, inclusive communities and address the UK’s housing crisis. Mixed-tenure BTR schemes, combining market-rate and affordable homes, are increasingly being recognised for their social and economic benefits.

Why Mixed-Tenure Projects Matter

1. Fostering Inclusive Communities

Mixed-tenure developments promote a sense of community by catering to a diverse range of residents, including key workers, families, and young professionals. By offering affordable housing alongside market-rate homes, BTR schemes:

• Reduce social segregation.
• Encourage interaction and inclusivity among residents.
• Reflect the needs of modern living environments.

2. Addressing the Housing Crisis

Affordable housing in BTR developments directly contributes to solving the UK’s housing shortage. By integrating affordable units into larger schemes, developers can:

• Provide more homes at a quicker pace compared to traditional affordable housing projects.
• Ensure long-term stability for residents by offering professionally managed properties.

The Benefits of Mixed-Tenure for Developers

1. Unlocking Joint Venture Opportunities

Collaborating with social housing providers allows developers to leverage funding and expertise. Joint ventures can:

• Streamline the delivery of affordable units.
• Improve financial viability through government incentives, such as grants or tax reliefs.

2. Enhancing Planning Approvals

Local authorities are more likely to approve BTR developments that include affordable housing, particularly in high-demand urban areas. This alignment with council priorities can reduce planning delays and improve project success rates.

3. Strengthening ESG Commitments

Affordable housing aligns with Environmental, Social, and Governance (ESG) goals by:

• Addressing social inequalities.
• Promoting economic diversity within communities.
• Enhancing reputational value for developers and investors.

Successful Examples of Mixed-Tenure BTR

Several developments are already leading the way in integrating affordable housing into BTR schemes. For example:

• Projects offering shared ownership units alongside private rentals.
• Collaborations with housing associations to manage affordable segments within developments.

These models demonstrate the potential of mixed-tenure projects to balance financial returns with social impact.

Affordable Housing as a Core Component of Build to Rent

At Three Sixty Space, we believe that affordable housing is not just an add-on but an integral part of creating thriving, sustainable communities. Our approach prioritises:

• Resident-focused designs that cater to diverse needs.
• Partnerships with social housing providers to deliver meaningful outcomes.

Mixed-tenure BTR projects are more than a response to planning requirements; they represent a commitment to fostering inclusive, equitable communities that benefit all stakeholders.