Build-to-rent (BTR) construction starts across the UK have fallen 79% in the year to June, according to research prepared by Savills for Real Estate:UK (RE:UK).
The report reveals that the drop was most acutely felt outside of London, with just 2,176 starts across the year in the regions, down 84% on the previous year’s 13,893 starts.
The number of BTR homes under construction fell 21% in Q2 2026 compared to Q2 2025, with London experiencing a 27% drop and regional BTR schemes under construction down 19%. RE:UK’s report found that BTR accounts for around 8% for all new homes being built.
In January, the British Property Federation (now part of RE:UK) revealed that just 613 BTR homes began construction in London last year, marking an 80% drop on 2024 levels.
Danny Pinder, director of policy at RE:UK, said the Q2 figures marked one of the “sharpest declines in the number of new starts on sites yet”. He added that he drop “undoubtedly reflects the impact the viability crisis is having on the development of BTR schemes across the UK”.
Pinder added: “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.
RE:UK said the sector’s broader viability challenges have been compounded by wider political and policy uncertainty in recent weeks following Andy Burnham becoming prime minister.
Pinder added: “We’ve had increased regulatory uncertainty, through speculation around rent controls and other potential property taxation changes continuing to impact on investment considerations.”
The organisation called on government to avoid creating future additional uncertainty or from making “abrupt and unwelcome” shifts in policy.
Jacqui Daly, director in Savills’ residential research team, said: “BTR 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.”