"The build-to-rent sector represents one of the most significant evolutions that residential property has seen in an awfully long time"
- Siân Hemming-Metcalfe - Inventory Base
Build-to-rent (BTR) completions have increased nearly 16% over the past year, but new data indicates that construction activity across the sector is slowing.
Analysis by Inventory Base of UK BTR planning data shows that completions rose by 15.8% between Q1 2024 and Q1 2025. In total, 127,156 BTR homes had been completed by the end of Q1 2025, compared with 109,847 a year earlier.
However, the number of BTR units under construction dropped by 14% during the same period, falling from 57,995 to 49,853. The figures suggest that developers either chose not to or were unable to maintain a steady supply of new projects, even as completed units increased.
Planning data reflects a similar trend. The number of homes reaching the Detailed Application stage declined by 11.8%, from 22,187 in Q1 2024 to 19,558 in Q1 2025.
Despite the dip in short-term activity, the pipeline is showing signs of resilience. The volume of BTR homes in the Detailed Permissions phase grew by 11.8% year-on-year, suggesting a potential uptick in new units in the near term. In addition, there was a 6.6% rise in homes in the Long-Term Planning phase, pointing to ongoing developer interest in the sector.
“The build-to-rent sector represents one of the most significant evolutions that residential property has seen in an awfully long time," explained Inventory Base operations director Siân Hemming-Metcalfe.
"Not only does the sector provide tenants with a higher quality of rental home and a greater level of security thanks to what tend to be much longer tenancy agreements than those found in the traditional private rented sector, but investors, developers, and landlords are also increasingly aware of the great returns that BTR can offer.
She added, “So while completion numbers have dipped over the past year, the continued tenant demand, as well as the UK government’s push to deliver an enormous number of new homes, we fully expect delivery to reach new heights in the coming years, especially in cities and other densely populated areas of the country.
“For building owners and managers, build-to-rent homes present somewhat of a challenge. Tenants have high expectations as to the standard of living and service they receive in these properties, which can be a lot for managers to deliver if they’re not equipped with the appropriate tools. This applies to every stage of the tenancy lifecycle, including check-in, inventories, communication, maintenance remediation, and check-out.”
