New research shows Build To Rent annual starts-on-site across the UK falling over 63% in Q3 2026, compared to Q3 2025.
There were 4,696 new starts, down from 12,674 respectively.
Q3 2026 was the eleventh consecutive quarter where completions (21,979) exceeded starts-on-site as the pipeline of new homes for rent diminishes due to rising construction and financing costs, planning and regulatory delays and the cumulative impact of taxes and levies on development viability.
The industry group Real Estate: UK says that while the numbers of consented units have increased slightly year-on-year, the number of schemes at detailed application stage has fallen by 9% since last quarter (Q3 2026 vs Q2 2026), which will impact longer-term supply.
The decline in the number of homes under construction combined with a higher than usual number of completions (21% higher in the twelve months to Q3 2026 than 2025; 21,979 vs 18,204), has seen the number of homes under construction fall by 30% nationally in the twelve months to September, with both London (down 28%) and the regions (down 30%) experiencing similar drops.
Growth in the regions has been hardest hit, with a 78% drop in new starts occurring in the regions over the same period.
This drop reflects viability pressures facing the sector, including ongoing delays with the Building Safety Regulator and unnecessary costs arising from the design of the new Private Rental Database, rolling out from next month.
Danny Pinder, director of Real Estate:UK, says:“The Q3 2026 delivery figures show the persistent and worrying decline in the number of new starts on site across the UK, and lay bare the extent to which the viability crisis is pushing development of homes for rent to breaking point.
“We are seeing wider commentary around developers withdrawing from London with today’s stats pointing to a more acute picture for delivery in the regions.
“Annual completions are up, which is positive, but if we can’t bring new supply into the pipeline quickly enough, we risk exacerbating the UK’s housing shortfall, with a significant impact likely to be felt down the line.”
This article is taken from Landlord Today