The number of build-to-rent homes under construction in Britain has fallen for the ninth consecutive quarter, according to multiple reports. This figure dropped 17% year-on-year from 59,874 in the first quarter of 2025 to the first quarter of 2026, contributing to a broader decline in housing supply. Net additional dwellings in 2024-25 were 208,600, down 6% on the previous year, according to major media sources.
5 million homes by the next general election. However, London is expected to build 88,000 new homes every year to meet the city's needs, yet only 4,550 homes per year will be built in London in 2027 and 2028, according to multiple reports. 5 million homes by the next election is still considered achievable by key industry stakeholders.
Small and medium-sized house builders have seen average sales drop by 41% between 2021 and 2025, according to multiple reports. Builders delivering 500-1,000 homes per year have seen average sales per outlet fall from 33 homes per year in 2021 to 19 last year. SME house builders delivered 40% of the UK's new homes in 1988, but completion rates have dropped 38% among builders outside the top 50.
70% of SME building firms say current market conditions are reducing their appetite for starting new sites, according to multiple reports. Only 28% of SMEs have a positive outlook on the UK housing market, while 37% feel negatively, according to multiple reports. Planning delays are exacerbating the crisis, with the average wait for planning consent for a build-to-rent home in London lengthening from 8 to 15 months on average in the last six years, according to multiple reports.
In London, 57% of small and medium developers brace for worsening conditions. Major builder Barratt Redrow is trimming its purchases of new land, reducing expected plot acquisitions from 10,000-12,000 to 7,000-9,000, according to major media sources. The company cited the Iran war as creating a less certain backdrop for housebuilding.
The exact impact of the Iran war on UK housebuilding beyond creating a less certain backdrop for Barratt Redrow remains unclear. Tax and regulatory pressures are mounting on the industry. The landfill tax is set to increase by 500% over the Parliament, according to multiple reports.