New build-to-rent housing starts in UK regions outside London have fallen by 84% in the year to June 2026. Data from Savills, prepared for Real Estate:UK, shows that regional starts dropped to 2,176 from 13,893 in the previous 12-month period.
Nationally, the number of new build-to-rent homes decreased by 79% over the same period. This represents one of the sharpest declines in the sector's recent history.
Savills attributed the decline to viability pressures, along with uncertainty from speculation around potential rent controls and a possible Land Value Tax. The sector has also faced challenges from the cladding crisis, with some operators diverting capital to fund remediation works.
Danny Pinder, Director at Real Estate:UK, stated that the decline reflects the impact of the viability crisis on build-to-rent schemes. He added that the sharpest decline in regional starts provides "further evidence of the fact that, in most parts of the country, it is now unviable to bring forward new schemes despite strong underlying tenant demand."