Sharp decline in build-to-rent starts
Danny Pinder, of Real Estate:UK, says the new the number of build-to-rent starts has plummeted in the past year.
Build-to-rent start figures reveal a sharp decline of 84% in the regions outside of London, it has been revealed.
At the same time, the number of new build-to-rent homes across the whole of Britain decreased by 79% in the year to June 2026, according to the statistics by Savills.
The lack of investment in the sector follows the cladding crisis, with some build-to-rent operators having to paid out large sums for remediation works – funding that would have otherwise been directed into building new sites.
Dramatic decline
Savills attributed the dramatic decline on “viability pressures”, as well as uncertainty created by speculation that rent controls were being introduced, and a Land Value Tax imposed.
The stats prepared by Savills for the investment platform Real Estate:UK – covering the 12 months up to June this year – , show new build-to-rent starts in the regions were down to 2,176 from 13,893.
For schemes under construction, nationally the number of homes fell by 21% in the three months from April to June this year compared to the same period a year ago. London experienced a more substantial drop at 27% than the regions at 19%.
Despite the decline in starts seen, build to rent continues to hold its own in terms of overall delivery, RE:UK says, accounting for nearly one in 10 new homes – at 8%.
Viability crisis
Danny Pinder, Director at Real Estate:UK (pictured), says: “The Q2 2026 delivery figures have shown one of the sharpest declines in the number of new start-on-sites yet, and undoubtedly reflect the impact the viability crisis is having on the development of build-to-rent schemes across the 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 underlaying 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.”
