Build-to-Rent supply slowdown prompts calls for policy intervention
Industry groups warn rising development costs and regulatory delays constrain delivery of London BtR schemes.
4 June 2026
A coalition of industry organisations has called for new measures to support London’s Build-to-Rent (BtR) sector after a sharp decline in the number of homes currently under construction across the capital.
The latest edition of the Who Lives in Build-to-Rent? report, produced by BusinessLDN, Real Estate: UK, the Association for Rental Living (ARL) and PriceHubble, highlights growing concerns over the future supply of professionally managed rental housing.
According to the report, the number of BtR homes under construction in London fell from 17,138 in the first quarter of 2025 to 12,134 in the first three months of 2026, representing a decline of almost one-third.
The report identifies rising construction costs and delays associated with the Building Safety Regulator’s Gateway approval process as key factors affecting delivery.
The findings come against a backdrop of wider challenges in London’s housing market, with new housing starts across all tenures remaining significantly below annual targets.
BusinessLDN is urging policymakers to use the forthcoming review of the London Plan to provide stronger support for Build-to-Rent development and encourage boroughs to allocate more sites for the sector.
The report also highlights concerns that BtR developments are currently excluded from certain housing grant funding mechanisms despite many schemes delivering affordable rental housing.
Analysis within the report shows that nearly 39% of the Build-to-Rent developments surveyed provide homes through Discount Market Rent and/or London Living Rent products.
The organisations behind the report are also calling for a review of the proposed Building Safety Levy and continued improvements to approval times within the Building Safety Regulator process to avoid further delays to housing delivery.
Alongside examining supply challenges, the report provides insight into the profile of Build-to-Rent residents across London.
The research, based on more than 12,000 homes and 21,000 residents, found that the sector attracts a broad range of occupiers. Students account for 32% of residents within the surveyed developments, while professionals working in finance, professional services, technology and the public sector are also strongly represented.
The report also challenges perceptions around affordability, finding that rental costs in Build-to-Rent developments broadly align with comparable properties in the wider private rented sector, particularly for one- and two-bedroom homes.
Brendan Geraghty, chief executive of the Association for Rental Living, said the findings demonstrate the role the sector can play in addressing housing needs across different demographics and income groups.
The report concludes that while demand for professionally managed rental housing remains strong, addressing viability pressures and regulatory bottlenecks will be critical if the sector is to contribute meaningfully to future housing delivery across London.
