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UK: Analysis from the British Property Federation (BPF) shows that construction starts of build-to-rent (BTR) fell by 80 per cent in London last year, with work starting on 613 units.
The research, which was for Q4 2025, also included year-on-year summaries.
According to the BPF, the decline was due to the BTR sector being hit by economic headwinds and delays from the Building Safety Regulator.
London’s decline in BTR construction starts (80 per cent last year) is more than double than the wider regions, where construction starts fell by 37 per cent. Across the country in general however, there has been an overall uplift in construction.
In the fourth quarter of 2025, the number of completed projects reached 146,700 units, representing a 13 per cent year-on-year increase nationally.
In London, around 12,800 homes were under construction and 42,536 in planning, with around 37,800 homes in construction and 58,926 in planning across the regions.
The total number of BTR homes in planning increased by two per cent in the 12 months to Q4 2025, amounting to more than 101,500 homes.
Danny Pinder, director at the BPF, said: “Changes implemented at the Building Safety Regulator towards the end of 2025 are showing signs of having an encouraging impact on the speed of decision-making.
“If 2025’s regulator delays can be eliminated in 2026, this should help remove one significant barrier to the delivery of new homes and alleviate some of the viability challenges developers are facing. Nevertheless, today’s statistics highlight the scale of difficulties facing the sector and the housing delivery pipeline [in] 2026.”
Highlights:
- London BTR construction starts fell 80 per cent in 2025, with work beginning on 613 units, according to the British Property Federation
- Decline attributed to economic headwinds and delays at the Building Safety Regulator
- London’s slowdown is more than double the regional decline (37 per cent), despite national construction rising 13 per cent YoY to 146,700 completed units
- BTR planning pipeline grew two per cent nationally to more than 101,500 homes by Q4 2025, indicating future supply potential
- BPF says regulatory reforms in late 2025 may help speed up approvals and unlock delivery in 2026
