Unlocking BTR’s full potential: Why data is the key to a resilient and profitable future

The UK’s build-to-rent (BTR) sector is poised for transformative growth, and a recently released white paper from Utopi and Moda Living outlines the most powerful lever to unlock that potential: data.

Drawing from more than 25 billion data points across 4,000 BTR units in the UK and Ireland, the white paper argues that smart data collection and analytics are no longer optional—they are essential for optimising performance, enhancing resident satisfaction, and future-proofing assets.

The data imperative

In an industry where net operating income (NOI) defines asset value, the white paper urges BTR operators to follow the path forged by the purpose-built student accommodation (PBSA) sector. PBSA has demonstrated how robust data strategies – from energy usage to resident behaviour change – can directly increase asset valuations, justify premium rents, and reduce operating expenses. Utopi and Moda Living argue that now is the time for BTR to adopt these strategies at scale.

Overcoming industry challenges

While investor appetite for ESG-compliant and data-driven assets is growing, the white paper highlights that BTR’s fragmented data landscape is slowing progress. Standardisation, trust in data integrity, and accessibility remain key challenges. Proptech offers a solution. Through real-time monitoring, AI-driven insights and automation, developers can close the gap, enabling operators to benchmark performance, pre-empt issues, and tailor offerings with precision.

Real-world value creation 

Moda Living’s partnership with Utopi is presented as a benchmark for data-first operations. Case studies reveal how initiatives like ‘Grinch Mode’ – a resident engagement campaign encouraging energy conservation over the Christmas holidays – achieved carbon savings of up to 49% in unoccupied units. Another example saw Moda reduce lift shafts in a new development after data revealed underutilisation, seeing potential savings of £400,000 in construction costs and boosting potential annual revenue by £144,000. And these insights directly translate into increases in asset value.

Key findings on resident behaviour

By comparing data from BTR and PBSA spaces, Utopi’s analysis reveals important behavioural patterns. While BTR residents tend to leave their heating on more often during weekend breaks (40% versus 30% in PBSA), they consume nearly twice the daily electricity (4.7kWh versus 2.5kWh). Despite this, BTR homes tend to be cooler on average, suggesting opportunity for behaviour-focused interventions. Campaigns focused on heating education and occupancy patterns – especially around peak unoccupancy months like December – can reduce waste and enhance ESG performance.

Data as a financial lever

The white paper argues that data should be integrated into the financial valuation process. The PBSA case of Harrison Street and CBRE showed a £17m increase in asset value through energy efficiency improvements validated by CBRE – representing a 9x ROI. If embraced early in the design and operational phases, similar gains are achievable in BTR. From energy savings to reduced OpEx, data-backed decisions can open doors to better financing and investor confidence.

A call to action

To capitalise on this opportunity, the white paper offers a four-point data blueprint for the BTR sector:

1. Track resident behaviour: Use smart sensors and data platforms to understand how residents live, and design performance optimising strategies accordingly.
2. Optimise pricing dynamically: Like PBSA, BTR should adopt real-time pricing strategies based on demand and market trends found in data.
3. Enhance living experience: Data can highlight friction points and shape amenities, services, and community initiatives that matter to residents.
4. Influence asset valuations: Bring valuers along on the data journey – show how ESG and operational data translates into increased NOI and see the sector benefit from the increased understanding.

With 282,500 BTR units in the UK pipeline, the sector has a pivotal chance to define its legacy. For investors, operators, and developers, the message is clear: data isn’t just a tool – it’s the foundation of BTR’s future.