More than 17,000 build-to-rent (BTR) homes completed during the period Q1 2024 and Q1 2025, bringing the total number of completed BTR homes to 127,150, according to new figures from the British Property Federation and Savills.
More than 55,400 homes completed in London and 71,700 completed across the regions, with regional growth (18%) outpacing the capital (13%).
For the fifth quarter in a row, completions in Q1 2025 outstripped new starts on site and this has led to a 14% contraction in the number of homes under construction nationally, with London experiencing an 18% year-on-year fall.
The number of consented homes rose by 13% over the past 12 months and the total number of homes in planning/pre-consent grew by 5% to 109,920 units. However, detailed planning applications in Q1 2025 fell by 16% on Q4 2024, raising concerns over longer-term supply.
Melanie Leech, chief executive of the British Property Federation, said: “Completions remain robust, and planning activity is holding up well, but the sector is facing a real bottleneck in progressing schemes through to construction. Viability challenges, coupled with continued uncertainty around project timelines are slowing momentum just at a time when rental demand is rising sharply. Investor appetite is there but unlocking it will require a concerted effort to support the delivery of BTR homes. Urgent action is needed in particular to deal with the pipeline blockage currently being caused by the Building Safety Regulator.
“The outlook for the remainder of the Parliament could be more positive, with specific support for build-to-rent expected as part of the government’s long-term housing strategy. Tackling backlogs and delays at the Building Safety Regulator, combined with planning reforms starting to bed in, could help provide more certainty around delivery. There’s no doubt that the sector’s ability to rapidly deliver high-quality, professionally managed homes will remain a vital part of the UK’s housing mix and the government’s ambitious 1.5 million homes target.”
Guy Whittaker, from Savills, added: “A continued trend this quarter has been the strength of build-to-rent completions, which reflect the positive sentiment of two to three years ago. Sentiment has been muted more recently as it has been more difficult to make multifamily development deals stack up.
“There are green shoots of recovery, however. The first quarter of 2025 marked the highest Q1 for new investment since 2022, supported by over £500m in urban multifamily forward funds, which will deliver over 1,500 homes once complete. There are significant challenges to future supply though, particularly for schemes facing building safety delays. This represents a substantial threat to current housing delivery and puts government housing targets at risk.”
