The UK’s build-to-rent (BTR) sector is continuing to deliver new homes at pace but the volume of schemes under construction has fallen sharply over the past year, raising questions over the strength of future supply.
New analysis from Property Inspect shows that 3,718 BTR units were completed in the third quarter of 2025, contributing to a total of 139,132 finished homes across the UK.
That represents quarterly growth of 2.7% and a 13.6% increase on the year, highlighting the rapid expansion of the professionally managed rental sector.
But while delivery remains strong, the development pipeline is weakening. The number of BTR homes under construction fell to an estimated 52,535 in Q3, down 12.5% on the year and 6.2% on the quarter – a reduction of 3,457 units compared with Q2. A year earlier, more than 60,000 units were being built.
RESILIENT IN THE LONG-TERM
The slowdown comes amid rising construction costs, tighter development finance and prolonged planning delays, all of which have weighed on new starts across the wider housing market this year.
However, the sector’s longer-term prospects appear more resilient. Property Inspect’s data shows 106,406 BTR units currently in the planning system, a 2.1% annual rise and up 1.4% on the quarter. In Q3 alone, 1,520 new BTR units entered planning, suggesting developers are continuing to assemble projects even as near-term delivery pressures build.
The figures indicate that while short-term construction activity has cooled, the pipeline of future schemes remains substantial – though the pace at which planned projects convert into starts will determine whether the sector can sustain its recent growth trajectory.
STRONG DEMAND
Sián Hemming-Metcalfe, Operations Director at Property Inspect, says: “The build to rent sector is set to be a focal point of growth in the UK property market, and may well become a dominant force in the rental sector.
“It is highly desirable for tenants who continue to create strong demand for the high standard, superior experience, and ultimate flexibility that BTR offers.”
“Investors and planning committees see BTR as a safe bet.”
And she adds: “Because of this strong, steady demand, investors and planning committees see BTR as a ‘safe bet’ and a reliable way of increasing the nation’s supply of good quality rental homes.
“The rise of build to rent does, however, present a challenge for managing agents and property managers. One of the sector’s primary selling points is the higher standard of service and living it provides compared to the wider private rented market.
SKY-HIGH EXPECTATIONS
“As such, tenants come in with sky-high expectations, assuming high quality and utmost efficiency at all times – from check-in through to eventual check-out.
“This means managers need to make use of top-tier tenant experience, communication, and inspection tools to ensure that tenants feel well cared for at all times, and to ensure they get that feeling of ‘a step above the rest’ that BTR promises to deliver.”
