The Value Of Trust Equity: How Brands Help BTR, PBSA Operators Stand Out

Investment in the UK’s build-to-rent market in 2025 exceeded £4.7B, the second-best year on record and 23% higher than the 10-year average. Purpose-built student accommodation also displayed rapid growth, with more than £1.8B invested in Q3, the most active third quarter on record.

But as more investors and landlords enter the BTR and PBSA markets, this leads to greater competition for renters — renters who increasingly expect more from their accommodation, said David Lawrenson, sales director for commercial, contract, hospitality and independent retail at Silentnight Group. 

“Renters don’t just want high-speed internet, a gym, workspaces and high-end interiors — they expect them,” Lawrenson said. “The markets are having to become more professional, moving away from providing white-good products just to get a room on the market as quickly as possible to selecting products that add value.”

Lawrenson said this trend will have an even greater impact on the market over the next few years. When the Renters’ Rights Act comes into force in May, it will increase tenant mobility. Rather than being locked into 12-month contracts as had been the case, they will be able to choose landlords and the services they offer more freely. 

Silentnight speaks to more PBSA and BTR operators that are tapping into this trend. A few years ago, Silentnight’s sales in its contract segment of the market, which includes BTR and PBSA, were less than 1% of its overall turnover. Today they account for 40%.

Lawrenson attributes this growth to landlords’ increasing awareness that tenants prefer products and services from brands they trust.

“Using a recognised brand allows a landlord to borrow its existing trust equity,” he said. “Having those brands in a property, whether it’s a tech brand or service provider, helps validate the quality of the entire building, which is a real strength in a competitive market.”

Silentnight is the UK’s most recognised sleep brand, Lawrenson said. The company’s research suggests it is three times more recognised than the next most dominant sleep brand. 

The company focuses much of its brand awareness on promoting the value of a good night’s sleep, which taps into the overall trend of wellness that is prevailing in the BTR and PBSA markets. Another trend is environmental, social and governance, Lawrenson said.

Silentnight recently became the UK’s largest bed manufacturer to be a certified B Corporation in recognition of its social and environmental performance. Almost all of Silentnight’s products are recyclable at the end of their lives, and Lawrenson said the business constantly assesses how many recycled products can be used in production and still perform the way they need to. 

“Tenants are more aware of all aspects of ESG,” he said. “They want to understand the materials that are used throughout the building, in the furnishings, and know that they are sustainable.”

In the world of PBSA, it is not unheard of for whole blocks of mattresses to be disposed of after only 12 months, Lawrenson said. This is a waste because only about 10% of the materials actually need to be replaced. 

“Rather than buy the cheapest option because you know it’ll only last 12 months, wouldn’t it be better to replace the bits of mattress that need to be replaced?” he said. “We’re having some really interesting conversations about innovation in this area and the role we can play in reducing waste.”

Another aspect of quality that landlords are all too aware of is the greater attention paid to building safety, particularly since the Grenfell tragedy, Lawrenson said. However, as the BTR and PBSA markets are still young, landlords are still coming to understand the standards that the products they put in their buildings must adhere to. 

Landlords might not be aware that the products used in a rental property need to conform to “medium hazard” standards, which require a safer product than what is used in a home and considered “low hazard,” he said.

“Without this knowledge, a lot of noncompliant products are still being used in both BTR and PBSA buildings,” Lawrenson said. “It’s on us as market leaders to help educate people about what is and isn’t the right fire retardancy standard, as well as the right durability regulation.”

Silentnight has an independently accredited laboratory on-site to test products. Its team runs 57 tests on each product to assess aspects such as fire retardancy, fitness for purpose and the strength of fabrics. 

As awareness of these standards grows in light of more stringent building safety regulations, it will become an entry requirement for landlords, not just a consideration, Lawrenson said. 

“If you want to position yourself as a responsible supplier to this market, you need to understand what standards your products need to meet,” he said. “Then you can exceed them and provide tenants with exceptional quality.”

This article was produced in collaboration between Silentnight and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.