The number of completed build-to-rent (BTR) homes in the UK has increased 13% in the past year to 88,100 units despite market conditions slowing development activity, according to new analysis by the British Property Federation.

The research, undertaken in partnership with Savills, shows the total number of BTR homes completed, under construction or in the planning pipeline stands at 253,402, up 12% in the past 12 months. 

Single Family Housing continues to expand strongly with 28,000 units completed or in the pipeline, making up 12% of the BTR sector. 

The number of homes under construction increased by 9%, buoyed by major house builders agreeing forward funding transactions with investors comprising over 2,000 homes for rent. Meanwhile, the number of new BTR homes in the design and planning phase increased 13% to 111,815.

However, build cost inflation and wider economic uncertainty looks set to slowdown delivery with construction starts totalling 5,549 units in the first half of the year, down 55% on the same period in 2022. In London, where high land values mean schemes are typically larger and more capital intensive, construction starts totalled just 836 units, down 80% year-on-year from 4,415 in H1 2022.