Build-to-rent (BTR) has become a defining feature of London’s evolving property market, with institutional investors and developers recognising the demand for high-quality, purpose-built rental stock. As this sector continues to grow, Fraser Bond provides specialist development finance solutions tailored to the unique needs of BTR schemes.
Build-to-rent development finance is designed to support developers constructing properties specifically for the rental market. Unlike traditional development loans geared toward sales, BTR funding considers the long-term income profile and operational strategy of a rental asset.
As noted by TAB, the structure of BTR financing typically accommodates a longer development and lease-up phase, before transitioning to income-based investment funding.
Loan Size
From £1 million up to £50 million, depending on site size, location, and sponsor track record
Loan-to-Cost (LTC)
Typically up to 85 percent of total project costs
Loan-to-Gross Development Value (LTGDV)
Usually up to 65 percent, based on completed asset valuation
Term Length
12 to 36 months, designed to support both build and stabilisation phases
Exit Strategy
Often includes refinancing into long-term investment debt or retention within a real estate income portfolio
These products are increasingly being offered by specialist lenders with a deep understanding of London’s rental dynamics.
The appeal of BTR lies in its ability to generate stable, recurring income while offering a professional rental product in underserved markets. Advantages include:
Institutional Backing
Large-scale BTR projects attract significant equity interest from pension funds and REITs
Steady Returns
Ongoing rental income reduces reliance on market cycles compared to for-sale developments
Tenant Demand
London's growing population and housing affordability issues have fuelled sustained demand for rental accommodation
Community Focus
BTR schemes often incorporate amenities, concierge services, and shared spaces designed to enhance tenant retention
Insights from Clifton Private Finance confirm the rising institutional appetite for stabilised BTR portfolios in London.
Fraser Bond provides comprehensive development finance advisory for BTR schemes at all stages of delivery. Our services include:
Feasibility and Risk Analysis
We assess rental demand, projected yields, and viability across various London postcodes
Structured Finance Design
From senior debt to mezzanine and preferred equity, we structure layered funding to suit your capital strategy
Access to Specialist Lenders
We maintain strong relationships with lenders actively backing BTR projects across Greater London
Ongoing Advisory
From term sheet to practical completion, our team provides continued financial oversight and lender coordination
This tailored approach ensures that developers entering or expanding in the BTR space have a competitive advantage in both funding and execution.
Build-to-rent development presents a resilient and scalable opportunity in London’s residential market. With rental demand continuing to outstrip supply, BTR is well-positioned to deliver long-term returns for developers and investors alike. Fraser Bond’s structured development finance services are designed to help bring these schemes to life with speed, clarity, and financial certainty.
To discuss build-to-rent development finance options for your London project, contact Fraser Bond today.
