BPF and Savills: Build-to-rent slowdown risks UK government housing target

New analysis from the British Property Federation (BPF) and Savills has revealed a steep decline in the construction of build-to-rent (BtR) homes in 2025, raising fresh concerns over the UK’s ability to meet its 1.5 million homes target.

In London, BtR starts fell by 80% year-on-year to just 613 units—the lowest level in years—while the regions saw a 37% drop, from 12,781 homes in 2024 to 8,063 last year. The figures reflect a challenging environment marked by regulatory delays, viability pressures, and economic uncertainty.

The slowdown comes despite BtR having delivered 146,700 homes to date—13% growth in the past year alone—and playing an increasingly vital role in housing delivery. With continued investor appetite and a growing pipeline, the model remains one of the few routes capable of delivering large volumes of high-quality, professionally managed rental homes at pace.

However, the data highlights growing friction in the delivery pipeline. Although the number of BtR homes with detailed planning permission rose 17% to 67,307, the rate of conversion from consent to construction remains sluggish. Detailed applications fell 21% in Q4 2025, and completions have outpaced starts for eight consecutive quarters.

Danny Pinder, director at the BPF, said: “Build-to-Rent homes are a critical part of the new homes market and can make a key contribution to the Government’s ambitious 1.5 million homes target. The model’s ability to deliver at scale and pace is especially important at a time when the traditional buy-to-let sector is in retreat due to regulatory and tax pressures.”

London’s figures were especially affected by delays at the Building Safety Regulator, although changes implemented late in 2025 are starting to show signs of improved decision-making. Other persistent challenges include build cost inflation, rising interest rates and policy uncertainty.

Guy Whittaker, head of UK build-to-rent research at Savills, said the fall in starts was “stark,” but noted growing resilience in the regions and a robust pipeline of consented schemes. “The priority now is to convert planning permissions into delivery,” he said.

The report urges further planning reform and faster regulatory processes to avoid long-term supply issues. While marginal annual growth was recorded in BtR homes in planning (up 2%), the broader picture points to a constrained pipeline unless market conditions and delivery processes improve.

With rental demand continuing to outpace supply, the report concludes that unlocking BtR development is essential not only for investor confidence but for meeting urgent national housing needs.