UK build-to-rent (BTR) starts on site fell by 79% in the 12-month period to the end of June 2026, according to the latest research from Real Estate:UK (RE:UK) prepared by Savills.
In terms of schemes currently under construction, nationally the number of homes fell by 21% in Q2 2026 compared with Q2 2025, with London experiencing a more substantial drop (27%) than the regions (19%). For the tenth consecutive quarter, annual completions exceeded starts.
Despite the decline in starts, BTR continues to hold its own in terms of overall delivery, accounting for nearly one in 10 new homes (8%).
Danny Pinder, director at RE:UK, said: “The Q2 2026 delivery figures have shown one of the sharpest declines in the number of new start-on-sites yet, and undoubtedly reflect the impact the viability crisis is having on the development of BTR schemes across the UK. That the sharpest decline in starts is within the regions is yet further evidence of the fact that, in most parts of the country, it is now unviable to bring forward new schemes despite strong underlaying tenant demand. In addition to viability, we’ve also had increased regulatory uncertainty, through speculation around rent controls and other potential property taxation changes continuing to impact on investment considerations.”
Jacqui Daly, director at Savills residential research, added: “Build-to-rent has become an increasingly important source of housing supply, with the potential to unlock new development by enabling housebuilders to open sites with investors underwriting delivery. As demand for rental homes continues to grow, it is important that the sector can continue bringing forward new schemes across the UK.”
