Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Build-to-Rent Starts Drop Sharply Across UK, Savills Data Shows

Savills statistics reveal a significant decline in build-to-rent starts, with an 84% drop in regions outside London and a 79% decrease in new build-to-rent homes across Britain in the year to June 2026. The figures, prepared for Real Estate:UK, highlight ongoing viability pressures and regulatory uncertainty affecting the sector.

According to Savills, new build-to-rent starts in the regions fell to 2,176 from 13,893 in the 12 months up to June 2026. Nationally, the number of homes under construction dropped by 21% in the three months from April to June 2026 compared to the same period the previous year. London saw a 27% fall in homes under construction, while the regions experienced a 19% decrease.

The report notes that the decline in investment follows the cladding crisis, with some build-to-rent operators diverting funds to remediation works instead of new developments. Savills attributes the sharp fall in starts to viability pressures and uncertainty caused by speculation around rent controls and the potential introduction of a Land Value Tax.

Despite the downturn in new starts, build-to-rent continues to account for 8% of new homes delivered, according to Real Estate:UK. The data suggests that, while overall delivery remains steady, the viability of launching new schemes is under significant strain in most parts of the country.

These trends are particularly relevant for UK letting agents and inventory clerks, as reduced build-to-rent activity may impact future rental stock and market dynamics. The ongoing viability and regulatory challenges could influence the availability of new rental properties and the operational landscape for property professionals.