Planning and building regulation now major blocker to new rental housing, says new report

Latest News Thu, Apr 16, 2026 5:46 AM

Latest research from the British Property Federation and Savills shows that the time it takes to secure planning consent for build-to-rent homes has doubled in London in the last six years, from an average of eight months to 15 months, 150% longer than the statutory time limit for major applications.

A similar slowdown in planning consents being granted has been seen across the country, with applications taking up to 14 months to determine.

The BPF argues that incoming planning reform and revisions to the National Planning Policy Framework can assist in streamlining decision-making, but are hampered by a continued gulf between proposed changes and implementation, delaying planning decisions to the detriment of new homes delivery.

In particular, improving planning resource – the BPF estimates 3,000 additional planners are required to boost capacity – and ensuring that rigorous but deliverable local plans are in place must be prioritised.

The number of build-to-rent homes in planning has increased marginally by 2% on the year nationwide, and is up 6% in the capital from 36,559 in Q1 2025 to 41,968 in Q1 2026. Despite this overall increase in homes in planning, the number of schemes at the detailed application stage has fallen by 17% since the last quarter. At the same time, the number of homes under construction continues to fall for the ninth consecutive quarter, down 17% on the year from 59,874 to 49,984 nationwide. In London the figure is even starker, down 29% from 17,138 to 12,134, as the enduring impact of delays at the Building Safety Regulator is felt across the construction industry.

Nearly 1 in 10 new homes are now build-to-rent (8%) according to the analysis, with the data showing that the tenure makes a vital contribution to overall housing delivery despite a backdrop of tax and regulatory pressures.

In response to viability challenges and building safety regulations, scheme sizes are growing, with 80% of the build-to-rent pipeline being schemes of more than 100 homes. Of the 1,002 completed schemes, the average development size was 147 homes, with 512 schemes being for less than 100 homes. The average size of schemes going through planning is now 295, accounting for incoming second staircase legislation and the increasing cost of land.

Danny Pinder, Director, British Property Federation, said, “The contribution that build-to-rent makes to the overall housing mix is essential to meeting demand, with 8% of the 210,000 homes delivered last year purpose-built for rent. Despite this, the rental market continues to come under intense pressure, with supply constrained and development challenging – exacerbated by entirely avoidable impacts of the incoming Renters’ Rights Act and renewed discussion of rent controls.

“The steady increase in the time it takes to determine applications reflects poorly on the planning system, with schemes on average taking 150% longer than the statutory requirement. Planning reforms to date have been helpful, but they are not sufficient to turn the tide on development. We need to see the Government go further to reform tax barriers to new homes and that the increasing costs of construction are offset by a reduction in Section 106 and CIL requirements.”

Jacqui Daly, Director, Savills Residential Research, says, “With the UK facing a housing shortage, build to rent is playing an increasingly important role in boosting overall supply, now accounting for close to one in ten new homes delivered. The sector has demonstrated its ability to adapt in the face of rising costs, tighter regulation and viability pressures, but continued delays across planning and the building safety regime are holding back delivery. If build to rent is to realise its full potential as a scalable and reliable source of new homes, it needs a more supportive operating environment, one that improves planning efficiency, provides regulatory certainty and enables schemes to progress quicker from consent to construction.”

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