Note on market rent valuation for Build-to-Rent properties

With the Renters’ Rights Act now in force, Build-to-Rent (BTR) operators must now only increase rents through the statutory section 13 process, with stronger powers for tenants to challenge rents through the First-tier Tribunal to determine if they are in line with market rents. 

The sector is rightly concerned about how the Tribunal, which isn’t familiar with BTR homes, will approach appeals in determining what a market rents for BTR are. In response to this concern, RE:UK worked with senior valuers across the top valuation and advisory agencies to create an impartial note, serving as a description of the market context, valuation structures, and differentiating factors present for BTR properties, for use by interested parties as part of the Section 13 process.

This note can be used as a reference point for the Tribunal in determining BTR market rents, and the sector in evidencing their rents through the appeal process.