Leaders Romans Group (LRG) has launched a white paper focusing on the future evolution of the Build to Rent market.

The release of BTR suburban communities: the next stage in the evolution of Build to Rent follows the launch of LRG’s Build to Rent taskforce and establishment of BTR offshoot Three Sixty Space.

The white paper looks towards the market, investment opportunity and character of BTR over the next ten years. The publication focuses on suburban family homes, for which LRG has coined the term ‘BTR suburban communities’ to differentiate from traditional city centre BTR apartments marketed at young professionals.

The new iteration – sometimes known as ‘suburban BTR’ or ’single family housing’ – comprises family homes located outside urban areas, focused around shared community spaces and shared services. According to LRG, these communities accommodate Millennials – BTR’s original target market – as their lifestyles change. The white paper describes the transition, examining the market’s exponential growth and future potential.

Andrew Jones, commissioner of the report and group director of corporate lettings & BTR at LRG, said: “In just ten years, the BTR sector has grown from zero to over 70,000 units per annum. Fast-forward another ten years and there is no doubt that the sector will have continued to expand and diversify.”

The potential for expansion of this sector is “almost unlimited”, according to Jones, as maturing Millennials seek family homes in bespoke communities.

“Those who have previously experienced the high level of service provided by traditional BTR are thought likely to be the core market for BTR suburban communities,” Jones added. “This innovative, service-based product will compare favourably with most of the stock currently available, and the popularity of the product will enable BTR suburban communities to attract additional investment and grow at pace.”

According to British Property Federation figures released this month, completed BTR homes in the UK could increase from 76,800 to more than 380,000 in the next ten years, and the sector could be worth £170bn by 2032.

In the white paper’s foreword, Ian Fletcher, director of policy (real estate) at the BPF, commented: “Unsurprisingly, in ten years the sector has evolved significantly, delivering greater variety and flexibility for the customer. The sector has also moved beyond London, to a situation where almost half of all local councils now have a BTR presence. I think the next ten years of BTR will be as exciting as the last ten.”

The white paper is available for download by clicking here.