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UK: New research by Savills for Real Estate:UK has revealed that build-to-rent construction starts have fallen by 63 per cent in a year.
The report found that 4,696 homes were started in the 12 months to September, down from 12,674 a year earlier. Outside London, the drop was even more marked at 78 per cent.
Real Estate:UK is calling for targeted tax and regulatory changes, claiming that the Budget failed to address the rising costs stifling development viability.
Danny Pinder, director of policy at Real Estate:UK, said: “The Q3 2026 delivery figures show the persistent and worrying decline in the number of new starts on site across the UK, and lay bare the extent to which the viability crisis is pushing development of homes for rent to breaking point. We are seeing wider commentary around developers withdrawing from London with stats pointing to a more acute picture for delivery in the regions.”
“Annual completions are up, which is positive, but if we can’t bring new supply into the pipeline quickly enough, we risk exacerbating the UK’s housing shortfall, with a significant impact likely to be felt down the line,” he added.
Annual completions were up 21 per cent to 21,979 homes, with completions exceeding starts for the 11th consecutive quarter.
The number of homes under construction fell by 30 per cent nationally over the year to September, including a 28 per cent decline in London.
The total number of consented units increased slightly over the year, but the number of schemes at the detailed application was down by nine per cent between Q2 and Q3 2026.
A recent survey of RE:UK members investing in BTR showed that speculation around rent control is currently the greatest dampener on investment. Ongoing delays with the Building Safety Regulator were the second-highest ranked issue. While Gateway 2 delays have improved over the past year, delays are increasingly emerging at Gateway 3, creating a risk that completed buildings remain vacant for longer and adding to viability pressures.
Although the Renters’ Rights Act ranked lower in the survey, members have raised significant concerns regarding the substantial operational and financial burdens associated with the ‘register your rental property’ service, which does not provide a bespoke process for large-scale landlords and will further impact viability.
Highlights:
- New research by Savills for Real Estate:UK has revealed that build-to-rent construction starts have fallen by 63 per cent in a year
- The report found that 4,696 homes were started in the 12 months to September, down from 12,674 a year earlier
- Outside London, the drop was even more marked at 78 per cent
- The number of homes under construction fell by 30 per cent nationally over the year to September, including a 28 per cent decline in London
