The rise of single-family housing: Why BTR’s future is suburban

The Build to Rent (BTR) sector is continuing to evolve, with Single Family Housing (SFH) gathering real momentum. Since 2023, over £3.7 billion has been invested in funding or acquiring SFH schemes, accounting for nearly 40% of all BTR investment in that period.

As architects, we are seeing a market shift that mirrors how people actually want to live. Houses already make up more than 60% of UK rental stock and half of renters live in suburban areas, yet institutional BTR has until recently been focused on high-density urban apartment blocks. That is changing.

Knight Frank’s Next Gen Living report shows 71% of investors plan to target SFH by 2029, and 2024 has already seen a 24% increase in completed deals compared to the previous year. It is a sign that the sector is waking up to the needs of families, downsizers and others looking for long-term, stable rental homes in more suburban and community-focused settings.

There are also practical reasons why SFH is becoming more attractive. These are typically low-rise schemes, sitting below the 18-metre threshold of the Building Safety Act. That makes them easier to fund, insure and manage, no small matter in a market still adjusting to the impact of new building safety regulations on mid- and high-rise developments.

But while SFH has been maturing, it can still learn a lot from other parts of the rental market. Co-living, for example, has shown how valuable resident feedback can be in shaping better buildings, better services and better communities. SFH operators have a real opportunity to take a similarly resident-led approach, ensuring new neighbourhoods are not only well designed but also responsive, adaptable and people-centred.

We are also seeing a shift in where housing is being delivered. While much of the early focus was on greenfield, edge-of-town sites, that is beginning to change. At Assael, we are seeing growing appetite for brownfield regeneration and suburban intensification, and we have designed schemes recently that unlock tricky sites in Twickenham, Henley, Melton Mowbray, Lowestoft and Springfield Village in Tooting.

The future success of SFH will depend on balancing scalability with a commitment to context, community and design excellence

Each demonstrates how housing developments can be integrated into existing communities in a way that adds value and reinforces local character through design. These are ideal schemes that could become SFH and perhaps there is a way for SFH to look more closely at constrained urban sites to unlock value.

Not all SFH entering the BTR market is the same. Much of the current stock comes from distressed assets, strategic land acquisitions, or bulk purchases of housebuilder units, with minimal adaptation. These schemes are often unresponsive to local character and contribute little to genuine community creation.

The share of purpose-built schemes is, however, growing. For example, Present Made by Apache Capital is one of the few investors delivering purpose-designed SFH (such as in Cambridge), complete with resident amenities and a strong sense of belonging.

This is where architecture can have the greatest impact, through innovative layouts, high-quality design, thoughtful placemaking and the creation of lasting social value.

Sophie Gunn, director at Packaged Living and one of the big players in the SFH market, comments: “At Packaged Living we are seeing continued growth of our Single Family and Garden Style housing portfolios. As the sector matures, it is clear that successful schemes depend on the quality of the homes as well as the placemaking principles that surround them, including walkability, landscape design and meaningful connections to community, all of which are key to delivering places people want to live in.”

The future success of SFH will depend on balancing scalability with a commitment to context, community and design excellence. This is not about rolling out a standard one-size-fits-all model, it is about creating homes, walkable streets and neighbourhoods rooted in their setting, with generous green space and access to play and local services.

Landscape architecture plays a pivotal role here, shaping how places feel and function as much as how they look. The rise of SFH is not just a market trend, it is an opportunity to shape the next generation of suburban living in the UK.

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