New research shows Build To Rent (BTR) starts-on-site across the UK falling by 79% in the year to June.
The figures marks one of the biggest falls in BTR development commencements, with the impact felt most acutely outside London, with an 84% drop occurring outside of the capital.
On schemes currently under construction, nationally the number of homes fell by 21% in Q2 2026 compared to Q2 2025, with London experiencing a more substantial drop (27%) than the regions (19%).
This is continuing the trend whereby completions exceed new starts-on-site and schemes coming through the planning system, despite an uplift in the number of schemes being approved.
This can be seen by the fact that for the tenth consecutive quarter, annual completions have exceeded starts.
Experts say this significant drop in the number of starts reflects the broader viability challenges that the BTR sector is increasingly facing and is contributing to the observed flight of investment to established BTR assets, as opposed to new development.
These viability challenges have been compounded by the wider political and policy uncertainty in recent weeks on issues like potential rent freezes and wider changes to property taxation.
This can be evidenced by a survey of investors on behalf of trade group RE:UK, undertaken prior to the confirmation by Angela Rayner that rent controls were off the table: it found that 100% of respondents would have reduced BTR investment and avoided Mayoral areas were rent controls introduced.
In response, RE:UK argues that the Bun government needs to avoid creating future additional uncertainty, or making abrupt and unwelcome shifts in policy, if it is to prevent viability pressures worsening and investment into new schemes being chilled.
BTR delivery nonetheless accounts for around 1 in 12 new homes (8%).
Danny Pinder, director of Real Estate:UK,says: 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 – which compiled the figures -adds: “Build to Rent 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.”
