A new analysis suggests the Build To Rent (BTR) sector commands a significant rental premium over the wider private rented sector.
Analysis by Zero Deposit shows BTR properties achieved an estimated rental premium of 12.3% in 2025, almost double the 6.5% premium recorded in 2016.
As a result, the average monthly rent across the UK’s BTR sector now stands at £1,546, compared with £1,377 across the wider private rented sector.
The premium is even more pronounced in London, where the average BTR property commands £2,560 per month, compared with a wider market average of £2,280.
The company says: “The willingness of tenants to pay more reflects the enhanced living experience offered by many Build To Rent developments, including modern amenities, professional management, greater energy efficiency, lower maintenance issues and a range of resident-focused services.”
Sam Reynolds, chief executive of Zero Deposit, comments: “The BTR sector continues to go from strength to strength, with increasing levels of investment, growing stock numbers and consistently strong tenant demand.
“In addition, the ability to command a rental premium reflects the quality, service and experience that Build To Rent operators provide.
“As the sector expands, rental growth and assets under management continue to increase, making the protection of rental income more important than ever.
“Many operators serve tenant groups who may not have access to a traditional guarantor despite being financially capable renters.”
This article is taken from Landlord Today