Build to rent finance guides
Plain-English answers on funding, the appraisal, gross development value and net operating income, rates, forward funding terms and what lenders look for, from a specialist arranger.
Straight answers to the questions developers and investors ask before they fund a rental scheme. Written by Matt Lenzie, who has arranged more than £500 million of property and development finance over 25 years. This is finance for the rental scheme as an income-producing asset.
What is build to rent finance
Build to rent finance funds the building, forward funding and long-term holding of homes built specifically to rent. This guide explains what it is, how lenders size it and the main products we arrange.
Read the guide → BasicsHow build to rent development finance works
Build to rent development finance funds construction in drawdowns against cost and value, then exits at stabilisation. This guide walks through how the facility is structured, drawn and repaid.
Read the guide → StructuresForward funding vs forward commitment
Forward funding and forward commitment both involve an investor buying a build-to-rent scheme on completion, but only one of them funds the build. This guide explains the difference and what it means for risk and price.
Read the guide → MarketBuild to rent yields explained
Yield is the single number that drives build-to-rent value and finance. This guide explains net initial yield, the prime UK yields by segment, and why a lower yield means a higher value.
Read the guide → AppraisalGross to net in build to rent
Gross-to-net is the gap between the rent a build-to-rent scheme collects and the income left after running it. This guide explains the costs, the typical range and why net operating income is what matters.
Read the guide → AppraisalLoan to GDV and loan to cost explained
Loan to GDV and loan to cost are the two leverage tests that decide how much a build-to-rent scheme can borrow. This guide explains what each measures and why lenders use the lower of the two.
Read the guide → LendingHow lenders size build to rent finance
Lenders size build-to-rent finance on a handful of tests that work together. This guide sets out what they are, in the order an underwriter applies them, so you can prepare a scheme that clears.
Read the guide → MarketSingle family housing vs multifamily BTR
Single family housing and multifamily are the two formats of build-to-rent, and they behave differently on cost, yield and finance. This guide compares them and explains why single family overtook apartments in 2025.
Read the guide → StructuresDevelopment exit finance for build to rent
Development exit finance bridges the gap between finishing a build-to-rent scheme and stabilising it. This guide explains how it repays the development loan, lowers the cost of carry and buys time to let up.
Read the guide → LendingBuild to rent finance rates and costs
Build-to-rent finance carries more than a headline rate. This guide sets out the indicative margins, the fees that sit alongside them and what moves the all-in cost up or down.
Read the guide → BasicsResidential development finance explained
Residential development finance funds the land and build of a new homes scheme, then exits at completion. This guide explains what it covers, how it is sized and how a build-to-rent facility fits within it.
Read the guide → StructuresBridging finance for property development
Bridging finance gives a property developer fast, short-term capital to secure a site or unlock a scheme. This guide explains what a development bridge funds, what it costs and how it differs from development finance.
Read the guide → StructuresBridging finance vs development finance
Bridging and development finance are both short-term property tools, but they solve different problems. This guide compares them and shows how the two combine on a real build-to-rent scheme.
Read the guide → BasicsHow to get into property development
Getting into property development means turning a site into homes at a profit, and the first scheme is the hardest. This guide sets out the routes in, how to raise finance with a limited track record and the mistakes to avoid.
Read the guide →Got a build to rent scheme in mind?
Send us the scheme and the developer and we will come back with a view on fundability and likely terms within one working day.