Time to secure planning consent for build-to-rent homes doubles in London

But the number of schemes at the detailed application stage has fallen by 17% since the last quarter.

The number of homes under construction has also continued to fall for the ninth consecutive quarter – down 17% on the year before, from 59,874 to 49,984 nationwide.

In London, the number of homes under construction is down by 29%, from 17,138 to 12,134.

Almost one in 10 new homes, equivalent to 8%, are now BTR. The research also found that 80% of the BTR pipeline includes schemes of more than 100 homes.

Of the 1,002 completed schemes, the average development size was 147 homes, with 512 schemes for fewer 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.

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

In particular, it said, improving planning resource and ensuring local plans are in place must be prioritised. The trade body estimates 3,000 additional planners are required to boost capacity.

Danny Pinder, director of the BPF, said: “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.”

He added: “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 [Community Infrastructure Levy] requirements.”

Jacqui Daly, director of Savills Residential Research, said: “With the UK facing a housing shortage, BTR is playing an increasingly important role in boosting overall supply, now accounting for close to one in 10 new homes delivered.

“If BTR 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.”

The Ministry of Housing, Communities and Local Government was approached for comment.

Earlier this month, data by Savills showed that BTR deals had surged to £795m during the first quarter of 2026. This is the highest first quarter of investment in the sector since 2022, which was just under £2bn.

Last month, Peter Vernon, chair of the National Housing Bank, a new subsidiary of Homes England, said that BTR is a “particular priority” for the institution.