Recent data from Savills reveals a significant decline in Build-to-Rent construction starts across the United Kingdom. Specifically, outside London, figures dropped by 84% year-on-year in the period up to June 2026. This trend indicates a noticeable slowdown in the development of new rental properties in regional markets.
Nationally, the number of Build-to-Rent construction starts decreased by 79% over the same period. This development reflects the current challenges and uncertainties facing the property market and raises questions about the future dynamics of the rental housing sector. Savills' analysis highlights regional disparity and suggests a concentration of development in the London market, although a slowdown is observed there too.
Regional Differences and Market Developments
The decline outside London is particularly pronounced and exceeds the national average. This could point to varying market conditions, investment strategies, or regulatory frameworks in different regions. While London continues to be a primary draw for Build-to-Rent investments, conditions in secondary markets appear to have worsened.
Sector experts express concern about this development. A sustained decline in construction starts could have long-term implications for the availability and affordability of rental accommodation, especially in growing cities outside the capital. The reasons for this drastic fall are manifold, including rising construction costs, higher financing expenses, and a general reluctance among investors to take on risk.
Outlook and Potential Implications
Savills' figures provide a clear indicator of the current market situation. It remains to be seen how this development will impact the entire property industry, and particularly the rental housing market. A lack of new supply could lead to rising rents and further exacerbate the already strained housing situation in many UK regions. The industry will need to monitor closely whether this trend continues or if conditions for Build-to-Rent projects improve in the coming months.
- —84% decrease in construction starts outside London.
- —79% national decrease in the Build-to-Rent sector.
- —Analysis period: year to June 2026.
