The Build-to-Rent (BTR) sector is growing at a pace that few anticipated. According to The Guardian, nearly 30% of new homes in London now fall under the BTR model, with foreign private equity firms driving the majority of new developments. The appeal is clear—stable, long-term rental income and professionally managed housing.
But while institutional capital is flooding in, BTR is facing a long-term operational challenge that many investors and developers are failing to address—the management of building information. As portfolios grow, fragmented, missing, or inaccessible building records will lead to compliance risks, inefficiencies, and asset devaluation.
The Compliance Challenge: Why Building Records Matter More Than Ever
The Building Safety Act 2022 introduced the concept of the ‘golden thread’ of building information, requiring building owners to maintain structured, up-to-date digital records of safety and compliance documentation. While this law applies specifically to higher-risk residential buildings, it sets a precedent that BTR operators cannot ignore.
With increasing regulatory scrutiny post Grenfell, investors, insurers, and local authorities are demanding greater transparency and accountability when it comes to building safety documentation.
Yet, many BTR operators still rely on outdated record-keeping methods:
Scattered spreadsheets, email chains, and siloed property management systems.
Inconsistent handovers of safety documents between developers, contractors, and asset managers.
Difficulties in retrieving critical fire safety, maintenance, and structural reports during due diligence.
The result? Missed compliance deadlines, delays in refinancing or selling assets, and exposure to legal liabilities. The BTR sector needs to get ahead of this now—because regulators, lenders, and institutional investors will demand it soon.
The Cost of Compliance Failures in BTR
Compliance failures in residential buildings carry significant financial and reputational risks:
The government has strengthened enforcement powers under the Building Safety Act, meaning landlords can face legal action and heavy fines if they fail to provide key building information.
Investors and insurers are starting to price in the risk of missing safety documentation, making non-compliant assets harder to refinance or sell.
Remedial work costs increase dramatically when there’s no clear record of building history, warranties, or previous works.
In short: poor building information management is no longer just an inconvenience—it’s a material risk to asset value.
The Financial Impact
For institutional investors and fund managers, BTR is a long-term asset class. A well-managed building holds its value not just in rental income, but in liquidity.
When a property is sold or refinanced, investors demand a clear, auditable trail of compliance and maintenance records. Yet, a lack of structured information can kill deals, reduce valuations, and create unnecessary friction during due diligence.
A recent report from Savills highlighted that:
Institutional investors increasingly favour assets with clear operational transparency.
Due diligence timescales have been increasing due to difficulties in retrieving accurate, up-to-date building documentation.
BTR portfolios with robust compliance records command stronger valuations in the long term.
How Smart Operators Are Solving the Problem
The most forward-thinking BTR operators are treating building information as an asset class in its own right. This means:
Centralising all compliance, maintenance, and operational documents in one digital repository.
Ensuring accessibility, so that asset managers, investors, and regulators can quickly retrieve records when needed.
Automating updates and reminders, avoiding the risk of critical documentation falling out of date.
Ensuring smooth handovers between developers, contractors, and operators, preventing key documents from going missing.
Without this, BTR portfolios will face unnecessary risk and operational inefficiencies, particularly as the regulatory landscape continues to evolve.
Investor & Insurance Pressures Are Increasing
In addition to government regulation, private investors and insurers are also tightening expectations around building documentation. Insurers are increasingly factoring in data transparency when pricing risk—meaning that BTR operators with poor building record-keeping could face higher insurance premiums or reduced coverage options.
Meanwhile, lenders providing financing for BTR developments are starting to demand greater clarity on building compliance documentation. Institutional investors don’t want to acquire liability risks—they want assets that have a clear, structured history of compliance and maintenance.
This shift means that operators who fail to prioritise building information management now may find it harder to secure competitive financing terms in the future.
Final Thoughts: The Future of BTR
BTR is maturing, and with that comes a greater expectation for professionalism, compliance, and transparency. Those who get ahead of the curve and invest in structured, digital building records will:
Ensure regulatory compliance, avoiding fines and legal issues.
Improve operational efficiency, reducing time wasted on document retrieval and due diligence delays.
Strengthen investor confidence, leading to better financing terms and stronger long-term valuations.
The message is clear: your BTR portfolio is only as strong as the information you have on it.
If building information is fragmented, outdated, or missing—it’s already costing you money. The best operators are already addressing this. The question is: are you?
Sources:
The Guardian - "Most big UK build-to-rent developers owned by foreign private equity firms"https://www.theguardian.com/global/2025/feb/16/most-big-uk-build-to-rent-developers-owned-by-foreign-private-equity-firms
UK Government - "Building Safety Act 2022 and the Golden Thread"https://www.gov.uk/guidance/keeping-information-about-a-higher-risk-building-the-golden-thread
Building Safety Regulator - "Understanding the Golden Thread"https://buildingsafety.campaign.gov.uk/building-safety-regulator-making-buildings-safer/building-safety-regulator-news/understanding-the-golden-thread/
Multivista - "Building Safety Act Compliance: Maintaining the Golden Thread"https://www.multivista.com/blog/building-safety-act-compliance-maintaining-the-golden-thread/
Savills - "UK Build to Rent Market Update"https://www.savills.co.uk/research_articles/229130/343810-0
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