Surging construction costs and long delays to winning consents have hampered the future supply of Build To  Rent (BTR) properties in London, it’s claimed.

A report by a string of BTR support groups including BusinessLDN, Real Estate: UK and the Association for Rental Living says the rising cost of development and compliance with rules from the Building Safety Regulator have contributed to a dramatic fall in the number of BTR homes under construction in the capital. 

There were 12,134 BTR homes under construction in London in the first three months of 2026, down from 17,138 in Q1 2025. 

This comes against the backdrop of a wider slump in new housing starts in London, which fell to 5,550 last year against an annual target of 88,000.

BusinessLDN wants the Mayor of London and councillors preparing the upcoming review of the London Plan to step in and help. 

In addition BusinessLDN wants the government to pause and review implementation of the Building Safety Levy, due to be introduced from October.

A BusinessLDN spokesperson says: “BTR homes have a crucial role to play in tackling London’s housing crisis, so a slump in supply should serve as a wake-up call for all levels of government. 

“The current review of the London Plan is a crucial opportunity to level the playing field between for-sale housing developments and BTR projects excluded from City Hall’s new emergency fast-track route. 

“We also need to see wider action to kickstart the entire market to accelerate housebuilding across all tenures.”

The report claims the average monthly cost of renting a BTR properties align closely with similar-sized private rental sector homes, especially for one bed flats (£1,978 and £1,884 respectively) and two bed flats (£2,423 and £2,229 respectively).