Savills Warns London Landlords: Planning Delays Doubling Build To Rent Timelines

Planning Delays: What Landlords Need to Know

Savills and the British Property Federation have raised a red flag over planning consent delays in London, particularly for Build To Rent (BTR) developments. Where approvals once took around eight months, the current average has stretched to 15 months — nearly doubling over six years. This far exceeds statutory targets and is causing a bottleneck in rental housing supply.

BTR schemes, which are purpose-built rental developments, are vital to increasing rental stock in a market facing chronic shortages. The extended timelines mean fewer projects progress from planning to construction, directly impacting landlords aiming to expand their portfolios or develop new rental properties.

Why Planning Delays Matter for You

Whether you are a single-unit landlord considering a development or an institutional investor managing a portfolio, these delays affect your timelines and costs.

• Financial implications: Longer approval periods tie up capital and increase holding costs. Rising construction inflation during delays further pressures budgets.
• Compliance and regulations: Simultaneously navigating evolving building safety regulations and planning requirements adds complexity and risk of unexpected costs or redesigns.
• Operational impacts: Delays postpone rental income generation and may affect tenant acquisition strategies.

Different Landlord Profiles, Different Challenges

• Single-unit landlords planning extensions or conversions should factor in longer consent periods when budgeting and scheduling.
• HMO operators seeking planning for additional units or changes of use face similar extended timelines, impacting cash flow projections.
• Portfolio landlords and developers with BTR ambitions must anticipate significant delays that could affect financing arrangements and market timing.
• Accidental landlords considering development should seek expert advice early to understand these new planning realities.

Practical Steps to Navigate the Slowdown

1. Plan for extended timelines: Build a minimum 15-month planning period into your project schedules, especially in London.
2. Engage early and often: Proactively communicate with local planning authorities. Request updates regularly to avoid surprises.
3. Monitor policy changes: Keep an eye on updates to the National Planning Policy Framework and local planning policies that may influence application outcomes.
4. Reassess project viability: Factor in increased delays, costs, and regulatory requirements when calculating returns. Adjust schemes accordingly.
5. Advocate through industry bodies: Support calls for increased planning resources and streamlined processes to help improve the system.

Next Steps for Landlords

• Schedule internal project reviews to update timelines and budgets.
• Arrange meetings with planning consultants and local authorities to clarify current application processes and expected timescales.
• Consult your finance team or lender on implications of extended development periods.
• Consider seeking professional advice from property consultants specialising in BTR and planning compliance.

How Rentals & Sales Can Help

We offer tailored portfolio reviews and compliance audits that incorporate the latest planning realities. Our pricing strategies reflect current market conditions and development risks, helping you optimise your rental returns despite delays. Contact us to schedule a consultation and ensure your projects remain viable and compliant.

Compliance Disclaimer: This article provides general guidance and should not replace professional planning or legal advice. Landlords should consult relevant experts for specific circumstances.