Build-to-Rent on a Local Scale: Rethinking Long-Term Rental in Oxfordshire

Build-to-Rent (BTR) has typically been associated with large urban apartment blocks, institutional investors, and city-centre regeneration. But recent shifts in demographics, investment appetite, and housing delivery models have opened the door to smaller, locally relevant BTR schemes.

What is Build-to-Rent?

BTR refers to purpose-built rental housing that is designed, constructed, and operated as long-term rented accommodation. It differs from traditional buy-to-let in that the entire scheme is held by a single owner (often a company or fund), and units are not sold individually.

While the earliest BTR schemes were concentrated in major cities, the model is now being adapted for:

• Edge-of-town family housing
• Semi-rural commuter settlements
• Regeneration of brownfield sites in market towns

Relevance to Oxfordshire and Surrounding Counties

In areas like Bicester, Didcot, Witney, and Banbury, BTR is being explored as a means to:

• Provide stable housing for key workers and young families
• Support economic growth without triggering outmigration
• Deliver rental stock that’s better managed and maintained than ad hoc private lets

Savills reported in early 2025 that smaller BTR schemes of 10-50 units are seeing increased interest from local authorities and regional housing associations, particularly where housing affordability ratios are above 9:1 (like much of Oxfordshire).

Design and Delivery Considerations

Tenure – Long-term, often with 3-5 year leases encouraged

Management – Centralised, often with on-site or local management agents

Affordability – Often includes a mix of market and discounted rents

Planning – Emerging support under local housing delivery strategies

Energy Standards – With EPC requirements tightening, BTR has an inherent advantage. New schemes can be delivered at Band B or above, avoiding the retrofit challenges that individual landlords will face. For tenants, this means warmer, safer homes and lower bills; for investors, it means compliance with forthcoming regulations and future-proofed value.

Planning authorities are increasingly open to BTR proposals if they demonstrate community integration, quality of design, and ongoing stewardship. In Oxfordshire, this aligns with the Local Plan ambition to diversify housing types without relying solely on market-sale schemes.

Key Takeaway

With new legislation, like the Renters (Reform) Bill, raising the bar for rental standards – from security of tenure to property quality – small-scale Build-to-Rent offers a proactive model. By delivering professionally managed, long-term homes that meet the Decent Homes Standard (covering safety, repair, modern facilities, and energy efficiency), BTR can support Oxfordshire’s housing needs while aligning with the direction of national policy.

While not every small site suits a BTR model, those near transport links, schools, or employment hubs may offer strong long-term yield potential – especially for investors seeking inflation-linked rental income.

Small-scale BTR doesn’t just align with the Renters (Reform) Bill’s focus on tenant security and quality – it also anticipates stricter EPC rules, ensuring homes are energy-efficient, affordable to run, and built to modern standards from day one.