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UK: Build-to-rent (BTR) starts on site in the UK fell by 79 per cent in the year to June 2026, according to new figures from Real Estate:UK.
The research, which was undertaken by Savills, reveals this equates to 2,176 fewer unit starts compared with H1 2025.
This decline was seen most acutely outside London, with an 84 per cent drop registered in the regions.
On schemes currently under construction, nationally the number of homes was down 21 per cent in Q2 2026 compared to Q2 2025, with London experiencing a bigger drop (27 per cent) than the regions (19 per cent).
For the tenth consecutive quarter, annual completions have exceeded starts.
Danny Pinder, director at Real Estate: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: “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.”
Highlights:
- Build-to-rent (BTR) starts on site in the UK fell by 79 per cent in the year to June 2026, according to new figures from Real Estate:UK
- The research, which was undertaken by Savills, reveals this equates to 2,176 fewer unit starts compared with H1 2025
- This decline was seen most acutely outside London, with an 84 per cent drop registered in the regions
- For the tenth consecutive quarter, annual completions have exceeded starts
