By Merilee Karr, CEO of UnderTheDoormat Group
The Build-to-Rent (BTR) sector was built around a simple premise: professionally managed housing designed for long-term renters. But the definition of “long-term” is changing.
Since the Renters’ Rights Act came into force on in May this year, the residential market has entered a new phase. Rolling tenancies, increased mobility and changing tenant expectations are reshaping how people engage with the market. Operators are already seeing increased demand for shorter stays and flexible lease structures.
For developers and investors, this presents both a challenge and an opportunity. Much of the conversation around the Renters’ Rights Act has focused on tenant protections. But the legislation also represents a structural shift. Fixed-term certainty is being replaced by greater tenant flexibility, making occupancy patterns less predictable and increasing pressure on landlords to adapt.
At the same time, BTR developers are facing mounting viability challenges. Rising construction costs, planning delays, building safety requirements and investor scrutiny are all reshaping the economics of residential development. In this environment, operational flexibility becomes increasingly valuable.
We have seen this kind of shift before. For years, many landlords resisted becoming pet-friendly, viewing it as an unnecessary risk. Today, allowing pets is increasingly expected within rental schemes. What was once seen as a concession has become a competitive advantage, helping operators attract and retain residents in an increasingly tenant-driven market.
The same evolution is now beginning around flexible occupancy and short-term rentals. Just as pet-friendly renting has become more widely accepted, allowing residents to sublet their apartment for short periods within a controlled and professionally managed framework is likely to become part of the next evolution of BTR. For operators, this is not about losing control of an asset, but gaining greater oversight, compliance and transparency around activity that often already exists informally.
Institutional BTR operators are uniquely positioned to adapt because the sector is very much service led. Building management, high-level amenities, co-working and operational architecture create the foundations for a more adaptable rental model.
This is not about turning residential developments into hotels or encouraging unregulated short-term letting. Professionally managed flexible living models are fundamentally different from fragmented and unmanaged short-let activity that many have sought to restrict.
Instead, this is about recognising how people increasingly live today. Professionals relocate temporarily for work, international tenants arrive before committing to permanent housing, and residents increasingly move between cities and flexible working patterns. Individuals may travel for extended periods to see loved ones while continuing to rent their homes.
At a time when institutional capital is becoming increasingly selective, developers also need to demonstrate that assets can remain resilient across changing market conditions. Flexible models allow operators to diversify income streams, smooth occupancy fluctuations and better respond to shifting demand patterns. In a more volatile investment environment, the ability to operate residential assets dynamically is becoming a meaningful competitive advantage.
Allowing a proportion of short-term or flexible rental accommodation within BTR schemes would help developers diversify income streams, reduce void risk and improve long-term asset performance. It would also allow the sector to better reflect modern living patterns and support cities competing for international talent and investment.
The future of BTR will not be defined solely by amenities or scale, but by operational adaptability.
The sector has already transformed how renting is delivered in London and the wider UK. The next stage is ensuring it has the flexibility required to remain viable, competitive and aligned with the realities of modern renting.
