The number of build-to-rent homes under construction has fallen by a fifth year-on-year as the sector battles planning and building rules, while feeling the impact of the Renters’ Rights Act and renewed discussion around rent controls.

New research from the British Property Federation (BPF) and Savills shows that the time it takes to secure planning consent for build-to-rent homes has doubled in London in the last six years, from an average of eight months to 15 months, 150% longer than the statutory time limit for major applications. There’s been a similar slowdown across the country, with applications taking up to 14 months to determine.

Capital

Although the number in planning has increased marginally by 2% nationwide and is up 6% in the capital from 36,559 in Q1 2025 to 41,968 in Q1 2026, the number of schemes at the detailed application stage has fallen by 17% since the last quarter.

Meanwhile, the number of homes under construction continued to fall for the ninth consecutive quarter, down 17% on the year from 59,874 to 49,984 nationwide. In London the figure is even starker, down 29% from 17,138 to 12,134, as the impact of delays at the Building Safety Regulator is felt across the construction industry.

Response

In response to these challenges, scheme sizes are growing, with 80% of the build-to-rent pipeline being schemes of more than 100 homes, reports the BPF which wants the government to go further to reform tax barriers to new homes.

BPF director Danny Pinder says the contribution that build-to-rent makes to the overall housing mix is essential to meeting demand, with 8% of the 210,000 homes delivered last year purpose-built for rent. “Despite this, the rental market continues to come under intense pressure, with supply constrained and development challenging – exacerbated by entirely avoidable impacts of the incoming Renters’ Rights Act and renewed discussion of rent controls,” adds Pinder.

The government recently announced that its newly established National Housing Bank would help to fund 3,300 BTR homes in a link-up with Homes England and Aviva.

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