What the latest BTR data means for future housing supply

💡 For our latest Real Estate:UK Spotlight, we caught up with Policy Officer Jordan McCay to discuss the latest Build-to-Rent (BTR) figures, the risks to future housing supply and what the Government can learn from Manchester’s success.

➡️ What do the latest figures tell us about BTR delivery?

BTR delivery is under significant pressure, with starts on site falling by 79% across the UK in the year to June 2026.

The decline has been particularly acute outside London, where regional starts fell by 84%, from 13,893 homes to 2,176. The number of homes under construction also fell by 21% compared with Q2 2025, including declines of 27% in London and 19% across the regions.

For the tenth consecutive quarter, annual completions exceeded starts. This means the sector is increasingly delivering homes from its existing pipeline without enough new schemes progressing to replace them.

BTR still accounts for around 8% of new homes delivered across the UK, but the sharp fall in starts raises serious concerns about future supply.

➡️ Why is the decline in regional starts a concern?

BTR has demonstrated its ability to support housing delivery, regeneration, long-term investment and the growth of regional cities.

Manchester and Salford show what the sector can achieve. Together, they have delivered 18,700 BTR homes, with a further 5,200 in the pipeline, making the area the largest BTR market outside London.

BTR has attracted investment, unlocked development opportunities and delivered high-quality, professionally managed rental homes. As our recent ‘Build to Rent’s Role in Housing Supply’ paper explains, its contribution extends beyond individual schemes to wider housing delivery and regeneration.

The challenge is creating the conditions that allow other regional cities to benefit from the same opportunities.

➡️ What can the Government learn from Manchester’s success?

Manchester benefited from strong rental demand, available development land, relatively lower land values and a supportive policy environment.

The market also previously benefited from greater policy stability, including access to Multiple Dwellings Relief, which supported the viability of large residential investments.

The key lesson is that investors need confidence and certainty. BTR requires substantial upfront capital and a long-term commitment, making a stable policy environment essential to bringing forward new schemes.

➡️ What should the Government do to support delivery?

It should focus on restoring investor confidence and improving development conditions by:

🔹 Providing greater policy certainty

🔹 Supporting viability, particularly in regional markets

🔹 Recognising BTR’s role in unlocking sites and supporting regeneration

🔹 Creating the right conditions for institutional investment in new homes

Manchester shows what is possible when investment, demand and policy stability come together. Applying these lessons nationally would help more cities deliver homes, support regeneration and drive economic growth.