BPF Spotlight: The latest BTR data

Last week, we caught up with BPF Assistant Director Kate Butler to get the latest insights on the Build-to-Rent market, including challenges developers are facing and how Government can speed up delivery and restore confidence. Read what she had to say below: 

How would you describe the current state of the BTR market?

2025 was a very challenging year for BTR. In London, only 613 new homes started construction – an 80% drop compared with 2024. Regional starts also fell 37%, from 12,781 in 2024 to 8,063 in 2025.

This slowdown comes despite a modest increase in planning consents – 67,307 homes now have detailed planning consent nationwide, up 17% year-on-year. Yet detailed planning applications fell 21% from the previous quarter, and completions have outpaced starts for two years now, greatly impacting future supply. 

What’s driving these declines, especially in London?

The main factor is the decline in development viability. Delays at the Building Safety Regulator (BSR) have hit developments everywhere, but particularly high-rise London projects. 

Rising build costs, higher interest rates, and uncertainty around policy and tax changes have also weighed on developers and investors, to the extent that many schemes that would have been viable just a few years ago are no longer moving forward. The BPF’s Boosting Development Viability paper, published last year, explores these challenges in more detail.

How important is BTR to housing supply?

BTR continues to play a critical role in delivering new housing. Across the UK, there are now 146,700 BTR homes, a 13% increase over the past 12 months. Professionally managed, these developments can deliver homes at pace, helping meet growing rental demand. 

With buy-to-let supply declining due to regulatory and tax pressures, BTR not only boosts delivery at scale but also raises the quality of rental homes.

What can the Government do to help the sector recover?

🔹 Reduce regulatory delays, particularly at the BSR, to unlock stalled sites.
🔹 Provide tax and regulatory stability, giving investors and developers confidence to build.
🔹 Reintroduce SDLT support for high-density housing, with a carve-out for low-value sites to make large-scale delivery viable.
🔹 Remove council tax on empty units in new developments, which can add significant upfront costs on large regeneration schemes taking up to two years to lease.

If these steps are taken, construction could rebound in 2026, closing the gap between consented homes and those actually starting on site, and helping the sector make a meaningful contribution to the Government’s 1.5 million homes target.