"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"
- Sarah Tonkinson - Foxtons
London continues to drive build-to-rent development forward despite a wider sector slowdown, with planning numbers up 8.5% year on year. The capital's resilience contrasts sharply with regional markets, where enthusiasm for new schemes has cooled.
Foxtons analysed the latest BTR planning data for Q3 2025, which shows 106,406 developments currently being planned across the nation. While this total is up 2.1% on an annual basis, the figures suggest the sector has been losing momentum when examining quarterly growth.
The total number of build-to-rent developments in planning increased by an average of 1.9% each quarter during 2024. However, the latest data for 2025 shows this average quarterly growth rate has fallen to negative 1%.
Regional markets outside London are driving the decline. Planning levels dropped 1.4% year on year, having also declined at an average quarterly rate of 2.9% between Q1 and Q3 2025. This compares to an average quarterly growth rate of 1.8% throughout 2024.
London recorded an 8.5% annual jump in planning numbers, with average quarterly growth of 2.6% over the first three quarters of 2025. This represents an improvement on the 2.4% average quarterly growth rate seen throughout 2024.
In Q3 alone, London accounted for 37.2% of all build-to-rent planning figures. This proportion has only increased since Q2 2024.
"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," said Sarah Tonkinson, managing director of Foxtons institutional PRS and build to rent.
Economic headwinds, rising build costs and planning delays have dented activity across regional markets, but 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," Tonkinson added.
Build to rent remains one of the few areas where delivery can keep pace with tenant demand as affordability pressures persist in the for-sale sector. London sits at the forefront of that delivery.
"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," Tonkinson explained.
