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New 1,000-home rental community “signals profound shift in UK property market”

ended 07. July 2025

A NEW 1,000-home rental community in a major city “signals a profound shift in the UK property market” and “cements renting as the norm for millions”, experts have said.

Homes England, Aviva Capital Partners, Moda Group, NatWest, and the West Midlands Combined Authority, have today completed a landmark investment deal to build a block solely for the rental market in Digbeth, Birmingham. 

The new homes will have a range of amenity spaces for all residents, including co-working spaces, 24/7 gyms and studio spaces, lounges and private dining rooms, the plans show.

Alongside new homes, the scheme will include community-focused features such as commercial units, landscaped public areas, and links to local attractions will contribute to Digbeth’s emergence as a vibrant, inclusive neighbourhood, they add.

Property experts said that while the plans are welcome in helping to alleviate the housing crisis, they also may "signal a profound shift in the UK property market” and “cement renting as the norm for millions”.

Babek Ismayil, Founder at OneDome, is sceptical of the plans.

He said: "Though new homes are always welcome, the sheer size of this development could signal a profound shift in the UK property market and it's a shift many aspiring homeowners will not want to see. We should be building homes for people to buy rather than rent, as it's the rental market that so many tenants want to escape, however polished and professional it may be. This country needs to make property ownership easier, not institutionalise the rental market."

Rob Peters, Principal at Simple Fast Mortgage, worries it may lead to a divided society.

He added: “On one hand, these projects ease housing shortages and regenerate areas like Digbeth. On the other, they cement renting as the norm for millions who would rather buy but can’t. Over time, if ownership remains unattainable, we risk creating a two-tier society: those who build wealth through bricks and mortar and those permanently renting with no asset base to fall back on. We live on an island with limited housing and a growing population. The time to invest into property ownership is always 'now'.”

Harps Garcha, Director at Brooklyns Financial, agreed, adding: “Corporate landlords are becoming a growing force in the housing market, but concentrating large numbers of units in one area is a new and untested approach. Historically, neighbourhoods without homeowner investment have struggled with upkeep, often falling into disrepair. With profit as the primary motive, corporate landlords may do the bare minimum in maintenance. This raises important questions, are these developments suitable for families with children, or could they evolve into modern-day ghettos? While they help address the rental shortage, their long-term social impact remains uncertain.”

Michelle Lawson, Director at Lawson Financial, said this may be the future of housing projects.

She continued: “Corporate landlording has been on the horizon for a while with John Lewis and Lloyds wanting to be part of this sector. It will be interesting to see how this fares and aligns with the Renters Reform Bill. One thing to consider is the significant number of underserved tenants with pets however, this appears to be an investment into a block of flats which also aren't favourable for family homes. Bearing in mind we have one of the most unhealthy and unfit nations, putting families into crowded blocks with no outside space will exacerbate this situation. Also, having these types of communities rather than a blended demographic this could be a recipe for disaster and a downturn of the public area.”

7 responses from the Newspage community

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Rob Peters
Principal at Simple Fast Mortgage
On one hand, these projects ease housing shortages and regenerate areas like Digbeth. On the other, they cement renting as the norm for millions who would rather buy but can’t. Over time, if ownership remains unattainable, we risk creating a two-tier society: those who build wealth through bricks and mortar and those permanently renting with no asset base to fall back on. We live on an island with limited housing and a growing population. The time to invest into property ownership is always 'now'.
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Editor
Michelle Lawson
Director at Lawson Financial
Corporate landlording has been on the horizon for a while with John Lewis and Lloyds wanting to be part of this sector. It will be interesting to see how this fares and aligns with the Renters' Reform Bill. One thing to consider is the significant number of underserved tenants with pets however, this appears to be an investment into a block of flats which also aren't favourable for family homes. Bearing in mind we have one of the most unhealthy and unfit nations, putting families into crowded blocks with no outside space will exacerbate this situation. Also, having these types of communities rather than a blended demographic could be a recipe for disaster and a downturn of the public area.
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Editor
Tony Redondo
Founder at Cosmos Currency Exchange
The Stone Yard project in Digbeth is a sign of things to come, reflecting the growing prominence of Buy-To-Rent, institutional investment, and public-private partnerships in addressing the UK’s housing crisis. It underscores the challenges of the property ladder, particularly for young professionals facing high property prices and low affordability but doesn’t entirely signal that homeownership is out of reach, given parallel efforts to deliver affordable housing. Generation Rent is likely here to stay for the medium term, driven by economic realities but policy interventions could mitigate this trend over time. The project may contribute to a recalibration of the property market toward sustainable, rental-focused urban developments, with mixed effects on prices, potentially stabilizing them through supply but increasing them in high-demand regeneration zones like Digbeth. Its success will depend on balancing investor returns with genuine community benefits and affordability.
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Babek Ismayil
CEO at homebuying platform OneDome
Though new homes are always welcome, the sheer size of this development could signal a profound shift in the UK property market and it's s shift many aspiring homeowners will not want to see. We should be building homes for people to buy rather than rent, as it's the rental market that so many tenants want to escape, however polished and professional it may be. This country needs to make property ownership easier, not institutionalise the rental market.
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Editor
Harps Garcha
Director at Brooklyns Financial
Corporate landlords are becoming a growing force in the housing market , but concentrating large numbers of units in one area is a new and untested approach. Historically, neighbourhoods without homeowner investment have struggled with upkeep, often falling into disrepair. With profit as the primary motive, corporate landlords may do the bare minimum in maintenance. This raises important questions, are these developments suitable for families with children, or could they evolve into modern-day ghettos? While they help address the rental shortage, their long-term social impact remains uncertain.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
If you thought buy-to-let landlords were the bad guys, wait until your landlord has a corporate IRR target and a brand strategy. Generation Rent hasn't just arrived, it’s been monetised, asset managed and fitted with concierge service. When the state cozies up with institutional capital to deliver large-scale Build-to-Rent, it’s not solving the housing crisis, it’s formalising it. That property ladder is now a climbing wall in your shared communal gym, so hope you enjoy the climb. And with ownership affordability buckling under the weight of interest rates and planning stasis, it's no surprise pension funds are stepping in where first-time buyers can't. Good news for yield-chasing institutions. Grim news for anyone who hoped their rent payments might, one day, turn into equity.
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Sean Horton
Managing Director at Respect Mortgages
Quality build-to-rent developments with proper amenities serve real demand from professionals who want flexibility without compromising on standards.

The community element looks thoughtfully planned. Mixing 20% affordable housing throughout prevents economic segregation, whilst commercial units and public spaces integrate with the wider Digbeth area.

It's the overall size that concerns me though.

1000 homes structured as 7 blocks of flats?

All rented rather than owned?

When everyone's renting, who's truly invested in the neighbourhood's future?