Starts on new build-to-rent homes saw a significant decline of 79% in the year to June 2026, with 2,176 homes entering construction, down from 13,893 a year earlier. This data comes from a Savills analysis conducted for Real Estate:UK.
The number of homes under construction nationwide was 21% lower in the second quarter of 2026 than in the same period last year. Starts outside London experienced an even sharper fall of 84%, while London recorded a 27% decline in homes under construction.
Danny Pinder, a director at Real Estate:UK, stated that the decline reflects a viability crisis affecting build-to-rent schemes across the UK, particularly in regions where bringing forward new schemes is now unviable. He also cited increased regulatory uncertainty, including speculation about rent controls and property taxation changes, as impacting investment considerations.
Jacqui Daly, a director of Savills Residential Research, highlighted the importance of build-to-rent as a source of housing supply. Despite the decline in starts, build-to-rent homes accounted for 8% of all new housing delivered.