Starts on new build-to-rent (BTR) homes fell by 79% across the UK in the year to June 2026, raising concerns that the sector is increasingly delivering homes from its existing pipeline without sufficient new development replacing them according to Real Estate:UK (RE:UK).

The latest RE:UK BTR figures, prepared by Savills, show just 3,455 homes started construction in the 12 months to Q2 2026, down from 16,634 a year earlier and 80% below the 2017–19 Q2 average of 17,643.

The decline was particularly pronounced outside London, where starts fell 84% from 13,893 to 2,176 homes. London recorded 1,279 starts, down from 2,741 a year earlier, although this represented an improvement from 1,178 in Q1 2026 and 794 in Q4 2025.

Danny Pinder, Director at RE: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.”

The number of BTR homes under construction also fell 21% year-on-year, from 63,734 to 50,362. There are now 12,643 homes being built in London and 37,719 across the regions, representing annual declines of 27% and 19% respectively.

Meanwhile, annual completions reached 16,827 homes, 9% below the 17,866 completed in the year to Q2 2025. Completions have now exceeded starts for ten consecutive quarters.

Despite the slowdown in development, the overall BTR sector continues to expand. More than 156,600 BTR homes have now been completed, 12% more than a year ago, including 64,724 in London and almost 92,000 in regional markets. The total pipeline stands at 310,310 homes, comprising 268,701 apartments and 41,609 houses.

More than 103,000 homes are progressing through the planning system – 41,204 in London and 62,056 elsewhere – up 4% year-on-year. However, the number of schemes at detailed application stage fell 3% during the latest quarter.

BTR currently accounts for around 8% of new homes delivered across the UK.