Record investment in build-to-rent (BTR) is not evenly translating into new homes, as regional schemes increasingly face financial viability challenges. According to Knight Frank, just over 6,700 BTR homes have been completed so far in 2026.
Nearly half of these new homes were delivered in London and Tier 1 cities, including Manchester and Birmingham. Tier 2 cities such as Nottingham, Liverpool, and Sheffield accounted for 14% of completions, with smaller towns and other regional locations delivering another 14%.
Knight Frank noted that projects outside the largest cities are under pressure from rising costs and tighter development economics. Some schemes now require grant funding, changes to Section 106 agreements, or adjustments to affordable housing obligations to proceed with construction.
Despite these challenges, the total completed BTR stock nationwide has reached 166,359 homes, marking a 17% increase compared to a year earlier. An additional 49,620 homes are currently under construction, with 125,639 in the planning pipeline.
Nick Pleydell-Bouverie, Knight Frank's head of residential investment, stated that the investment case for BTR remains strong, with demand for high-quality rental homes continuing to outstrip supply in many markets. However, Lizzie Breckner, head of residential investment research, highlighted a growing divide between the largest cities, where schemes are progressing, and regional markets where rising costs are making new projects harder to bring forward.