‘Continuing the trend of pipeline exhaustion’
Starts on site for new BTR homes fell 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.
It marks one of the biggest falls in BTR development commencements, with on site starts falling 84% outside of the capital. On schemes currently under construction, nationally the number of homes fell by 21% in Q2 2026 compared to Q2 2025, with London experiencing a more substantial drop (27%) than the regions (19%).
This is continuing the trend of pipeline exhaustion, says Real Estate:UK. This is when completions exceed new starts-on-site and schemes coming through the planning system, despite an uplift in the number of schemes being approved. It’s now the tenth consecutive quarter that annual completions have exceeded starts.
The company says the significant drop in the number of starts reflects the broader viability challenges that the BTR sector is increasingly facing, compounded by the wider political and policy uncertainty in recent weeks. It says such uncertainty is pushing investment to established BTR assets, as opposed to new development.
However, despite the decline in starts on site, BTR continues to hold its own in terms of overall delivery, accounting for nearly 1 in 10 new homes (8%).
One of the sharpest declines yet
Danny Pinder, director of Real Estate:UK said: “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 BTR 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 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: “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. As demand for rental homes continues to grow, it is important that the sector can continue bringing forward new schemes across the UK.”
