Construction starts on new Build to Rent (BTR) homes have collapsed by 63% over the past year, raising concerns about the future supply of rental properties across the UK.
Figures from Savills, highlighted by home-moving comparison platform Moving Compared, show that construction began on just 4,696 BTR homes in the 12 months to September 2026.
That compares with 12,674 homes during the previous 12-month period.
The sharp fall comes despite a 21% increase in completions, with 21,979 purpose-built rental homes delivered over the same period.
The contrasting figures suggest developers are completing existing schemes faster than they are starting new ones, potentially leaving a significant gap in the future supply pipeline.
Regional construction starts slump 78%
The slowdown has been particularly severe outside London, where BTR construction starts fell by 78% year-on-year.
London has also experienced a contraction, with the number of BTR homes under construction dropping by 28% over the same period.
The figures point to growing pressure on the development pipeline, despite continued demand for rental accommodation.
In Manchester, Savills reports that securing funding for city-centre developments remains difficult.
However, some investment is continuing. Royal London agreed to fund 173 rental apartments in Newton Heath during the third quarter of 2026.
Birmingham presents a different picture, with existing rental supply helping to restrain rent increases during the three months to August.
Warning over future rental supply
Moving Compared warns that the collapse in construction starts could restrict the choice of newly built rental homes available to tenants in the coming years.
The company advises renters considering new-build developments to check whether construction has actually started rather than relying on projected completion dates.
It also recommends that tenants considering buying their first home compare the full costs of renting and homeownership, including mortgage repayments, deposits, maintenance and transaction fees.
While BTR completions have continued to rise, the steep fall in new projects raises questions about the sector’s ability to maintain delivery levels.
Unless construction activity recovers, the current pipeline of developments could leave fewer purpose-built rental homes reaching the market in the years ahead.
