London is continuing to defy a wider slowdown in the Build to Rent (BTR) sector with new schemes in planning up 8.5% year on year according to the latest analysis from Foxtons.
Reviewing Q3 2025 planning data Foxtons found that there are currently 106,406 BTR homes in planning across the UK.
While this figure is up 2.1% annually, momentum across the sector has weakened, with quarterly growth turning negative.
During 2024, the number of BTR developments in planning increased by an average of 1.9% per quarter. In contrast, the average quarterly growth rate across 2025 has fallen to -1%, signalling a clear loss of pace.
PLANNING LEVELS DOWN
The slowdown has been driven largely by regional markets outside the capital. Across these areas, BTR planning levels are down 1.4% year on year and declined at an average quarterly rate of -2.9% between Q1 and Q3 2025, compared with average quarterly growth of 1.8% throughout 2024.
London, however, continues to show resilience. Planning numbers across the capital rose by 8.5% annually, with average quarterly growth of 2.6% over the first three quarters of 2025, improving on the 2.4% quarterly average recorded during 2024.
In Q3 2025 alone, London accounted for 37.2% of all Build to Rent homes in planning nationally, a share that has continued to increase since Q2 2024.
BUCKING THE TREND
Sarah Tonkinson, Managing Director of Foxtons Institutional PRS and Build to Rent, says: “The Build to Rent sector has established itself as a vital component of the UK rental market, but the latest figures suggest that appetite for new development is cooling outside of London.
“But whilst economic headwinds, rising build costs and planning delays have clearly dented activity across regional markets, London continues to buck the trend.
“We’ve seen consistent growth in planning numbers across the capital, reflecting both the strength of rental demand and the long-term confidence investors hold in the London market.
“With affordability pressures persisting in the for-sale sector, Build to Rent remains one of the few areas where delivery can keep pace with tenant demand, and London is at the forefront of that delivery.”
