Build to rent vs build to sell planning

Ybe

Do build to sell developments have the same planning permission as build to rent. There’s a developer in my area who builds a lot of built to rent apartments and has recently started building another in the area which I am quite interested in. In response to a local resident who commented on the planning that this builder always builds buy to rents, the response was that this will be for private sale. Does this mean the planning permission is only for build to sell and the developer can’t change it to a rental apartment? 

user1977

I would guess “build to rent” more likely because it’s being sold en masse to a single landlord rather than the planning restricting it.

Ybe

user1977 said:

I would guess “build to rent” more likely because it’s being sold en masse to a single landlord rather than the planning restricting it.

How can you tell if will be sold as individual units or en masse to a single landlord? 

eddddy

Are there no signs around the development saying what their plans are? Most big development sites I see have big glossy signs telling people what's coming - before the building even starts.

What do you mean by "build to rent"?

For example, do you mean...

• A housing association takes over the development, and rents out the apartments

• Or they're advertised as something like "BTL Investments available off-plan, with excellent yield and capital growth potential" etc, etc, etc

Or something else?

If they're advertised as "Investments" for "private investors" to buy off-plan, they're generally high risk.

Ybe

eddddy said:

Are there no signs around the development saying what their plans are? Most big development sites I see have big glossy signs telling people what's coming - before the building even starts.

What do you mean by "build to rent"?

For example, do you mean...

• A housing association takes over the development, and rents out the apartments

• Or they're advertised as something like "BTL Investments available off-plan, with excellent yield and capital growth potential" etc, etc, etc

Or something else?

If they're advertised as "Investments" for "private investors" to buy off-plan, they're generally high risk.

There’s no advertising on the hoarding. 

user1977

Ybe said:

user1977 said:

I would guess “build to rent” more likely because it’s being sold en masse to a single landlord rather than the planning restricting it.

How can you tell if will be sold as individual units or en masse to a single landlord? 

Well, are they marketing it at all? Have they issued any press releases about the development ?

Ybe

user1977 said:

Ybe said:

user1977 said:

I would guess “build to rent” more likely because it’s being sold en masse to a single landlord rather than the planning restricting it.

How can you tell if will be sold as individual units or en masse to a single landlord? 

Well, are they marketing it at all? Have they issued any press releases about the development ?

Nothing. Looking at the documents in the planning portal, they aim to complete construction by August 2025 with a 6 month sales period (50% sold off plan).  

daveyjp

The permission is for residential units, no disctinction over rented or sale.  Some developers focus on rented, some sale, some a mix depending on the local market.

However local housing policies may dictate type, size and whether some units have to be for affordable sale or rent.

Ybe

daveyjp said:

The permission is for residential units, no disctinction over rented or sale.  Some developers focus on rented, some sale, some a mix depending on the local market.

However local housing policies may dictate type, size and whether some units have to be for affordable sale or rent.

So basically I won’t know until it’s built and the developer puts it on the market whether it will be for sale or rent? 

Doozergirl

Ybe said:

daveyjp said:

The permission is for residential units, no disctinction over rented or sale.  Some developers focus on rented, some sale, some a mix depending on the local market.

However local housing policies may dictate type, size and whether some units have to be for affordable sale or rent.

So basically I won’t know until it’s built and the developer puts it on the market whether it will be for sale or rent? 

In a word, yes. 

Ybe

Doozergirl said:

Ybe said:

daveyjp said:

The permission is for residential units, no disctinction over rented or sale.  Some developers focus on rented, some sale, some a mix depending on the local market.

However local housing policies may dictate type, size and whether some units have to be for affordable sale or rent.

So basically I won’t know until it’s built and the developer puts it on the market whether it will be for sale or rent? 

In a word, yes. 

So developers can just say it will be for private sale in response to comments from local residents and also write in their viability assessment that it will be for sale with 50% sold off plan, and do something completely different and rent instead?  Sounds like a flaw in the planning system to me.