Though completions are up, the analysis carried out by Savills found construction has contracted by 20% year-on-year.

The data has shown 12,400 more homes completed in 2024 than starting.

This construction slowdown is not equal across the UK. In London, numbers fell by 11% to 15,500 homes while a fall of 23% to 34,500 homes was seen elsewhere in the regions.

Overall, the BTR sector has grown 5% year-on-year with the number of these properties either complete, in construction or in a planning phase is 273,700.

The BTR pipeline has 103,000 homes in the planning system, including 54,500 having secured consent, but applications have dropped by 12% since the last quarter.

Commenting on the findings, the BPF highlighted increased cost pressures as the cause of this slowdown which could create longer-term supply challenges in the future.

The abolition of Multiple Dwellings Relief (MDR) in June was also identified as exacerbating the issue with the BPF estimating the number of homes foregone could be up to 25,000.

•   The Finance Professional Show 2023: The Video
•   The Build-to-Rent bubble can burst without effective management
•   'Doomed to failure': Low housing completion stats pile pressure on government targets

“Increased regulatory and other costs that have faced the sector for the last few years is starting to take its toll on new schemes, as evidenced through a drop in construction starts and new planning applications,” commented Ian Fletcher, director policy at the BPF.

“Investors continue to be interested in BTR for the UK market but we need to see policy that encourages schemes to progress and attracts the £250bn of further investment that is needed to meet demand.”

Guy Whittaker, head of UK BTR research at Savills, added: “Starting new sites remains a challenge and the reduction in the construction pipeline is reflective of wider development challenges facing all forms of housing delivery.

“Viability remains a hurdle in the current climate, with elevated debt and construction costs,  as does the planning system, particularly in London. If these obstacles can be navigated there is no shortage of investor demand to deliver new homes for rent, with more and more investors re-allocating capital from traditional investment sectors to living sectors.”