Starts on site for new build-to-rent homes have fallen by 79% across the UK in the year to June 2026, according to the latest delivery statistics prepared by Savills on behalf of Real Estate:UK ("RE:UK").
The decline was most acute outside London, with an 84% drop in the regions taking starts down to 2,176 from 13,893. On schemes currently under construction, the number of homes fell by 21% nationally in Q2 2026 compared with Q2 2025, with London recording a steeper drop of 27% against 19% in the regions.
The figures point to continued pipeline exhaustion, with completions exceeding new starts on site and schemes coming through planning, despite an uplift in the number of schemes being approved. Annual completions have now exceeded starts for the tenth consecutive quarter.
The drop in starts reflects broader viability challenges facing the build-to-rent sector, and is contributing to a flight of investment toward established assets rather than new development. These pressures have been compounded in recent weeks by wider political and policy uncertainty, including speculation over potential rent freezes and changes to property taxation.
A survey of investors carried out on behalf of RE:UK, conducted before Deputy Prime Minister Angela Rayner confirmed that rent controls were off the table, found that:
100% of respondents said they would have reduced build-to-rent investment had rent controls been introduced
all respondents said they would have avoided mayoral areas under such a scenario
RE:UK argues that government needs to avoid creating further uncertainty, or making abrupt and unwelcome policy shifts, if it is to prevent viability pressures worsening and investment into new schemes being chilled.
Despite the fall in starts, build-to-rent continues to account for nearly 1 in 10 new homes, some 8%, underlining both its role in housing supply and the extent to which viability pressures are affecting the wider housing sector.
"The Q2 2026 delivery figures have shown one of the sharpest declines in the number of new starts on sites yet, and undoubtedly reflect the impact the viability crisis is having on the development of BTR schemes across the UK," said Danny Pinder, director at Real Estate: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 underlying 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 of Savills residential research, said the sector's role in housing supply remains significant. "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," she said.
"As demand for rental homes continues to grow, it is important that the sector can continue bringing forward new schemes across the UK."
