- Build-to-rent housing starts outside London fell 84 per cent in the year to June 2026.
- Across the UK, new build-to-rent starts dropped 79 per cent over the same period.
- Developers say viability pressures and policy uncertainty are making new projects harder to deliver.
The UK build-to-rent sector has recorded one of its steepest slowdowns in recent years, with new housing starts falling sharply even as demand for rental homes remains strong.
New data from Savills, prepared for investment platform Real Estate:UK, shows that build-to-rent housing starts outside London fell 84 per cent in the year to June 2026. Across the UK, the decline reached 79 per cent, raising fresh concerns about the pace of new rental housing delivery.
The regional market saw new build-to-rent starts fall to 2,176 homes, down from 13,893 in the previous 12-month period. The slowdown was not limited to new developments. Homes under construction across the UK also declined, with projects falling 21 per cent between April and June 2026 compared with the same period a year earlier.
London recorded a 27 per cent drop in homes under construction, while developments outside the capital declined by 19 per cent.
Despite the slowdown, build-to-rent schemes still accounted for around 8 per cent of all new homes completed across the UK, meaning almost one in every 10 new homes delivered was built specifically for the rental market.
Developers point to rising costs and policy uncertainty
According to Savills, the sharp fall reflects growing pressure on the financial viability of new developments. Higher construction costs, uncertainty over possible rent controls and discussions around a potential Land Value Tax have all affected investment decisions.
The sector has also continued to deal with the financial impact of the cladding crisis, with some operators reportedly redirecting investment away from new projects to fund building remediation work.
Danny Pinder, Director at Real Estate:UK, reportedly said the latest figures highlight one of the sharpest falls in new build-to-rent starts seen so far and reflect the viability challenges facing developers across the country.
He also reportedly said the sharper decline outside London suggests many regional projects are no longer financially viable, despite continued demand from tenants.
Pinder added that uncertainty around future property regulations and taxation has made investment decisions more difficult, reportedly pointing to speculation over rent controls and other possible tax changes as additional factors weighing on the sector.
The figures add to wider concerns about the UK housing market, where developers across multiple sectors continue to face rising costs, tighter margins and an increasingly uncertain policy environment.
