Build-to-rent homes are now letting at an estimated 12.3% premium to the wider rental market, according to fresh Hamptons analysis reported on Tuesday, adding to evidence that institutionally backed stock is pulling further away from mainstream private rentals on price.

The data points to a widening gap between purpose-built rental schemes and the rest of the market at a time when tenants face fewer mainstream choices and investors are weighing whether large-scale professionally managed stock is competing on service, amenity or simple scarcity.

For landlords, the figure matters because it shows where pricing power is building in the market. If tenants are paying a double-digit premium for build-to-rent, smaller landlords need to ask whether that reflects stronger product, tighter supply in the wider market, or a split rental sector where premium blocks and traditional lets are no longer moving together.

Hamptons puts build-to-rent premium at 12.3%

Landlord Today, citing Hamptons analysis, said build-to-rent properties achieved an estimated rental premium of 12.3% in 2025 compared with mainstream rentals. That suggests the sector is still commanding a notable uplift despite affordability pressure across much of the market.

The premium is significant because build-to-rent operators have spent the past few years selling tenants a package rather than just a flat – professional management, shared amenities, newer stock and in many cases faster maintenance response. The question now is whether that package is gaining pricing strength because tenants value it more, or because ordinary rental supply remains too thin.

This follows Residential Landlord’s recent coverage of slower rent growth in parts of the market and its reporting on how pressure on rents is feeding arguments over supply and intervention. The latest build-to-rent figures suggest the market is not moving in one line, with premium professionally managed stock still finding room to charge more.

Hamptons publishes regular market research and background analysis on its property research hub.

Premium blocks may widen the gap with smaller landlords

For traditional landlords, the warning is not that every tenant will suddenly pay build-to-rent prices. It is that the market may keep splitting. Newer schemes with concierge-style service and brand-led management can defend higher asking rents, while older private stock may face more resistance unless it is priced sharply or upgraded.

There is also a competitive angle for investors. If institutionally backed operators are still extracting a healthy premium, that supports the argument that scale, specification and service matter more than ever. Smaller landlords who cannot match that offer may need to compete on flexibility, location or value rather than assume general rent inflation will do the work for them.

At the same time, a 12.3% premium is not an automatic sign of strength across the whole private rented sector. It may instead highlight how uneven the market has become, with one part of it able to monetise quality and convenience while another is more exposed to affordability limits.

Opinion

Build-to-rent premiums are not just a tenant lifestyle story. They are a signal that the rental market is becoming more segmented, and that matters for every landlord trying to price stock or plan upgrades. If mainstream landlords keep losing the quality race, the premium end of the market will not just look different – it will earn differently too.