Despite approval volumes remaining relatively elevated, Urbis data shows that the flow of Build to Rent projects through to construction and completion has slowed materially since 2019.
A growing share of recently approved schemes are yet to commence, with conversion rates declining over successive years. This divergence is not being driven by a lack of demand. It is being shaped by feasibility.
Escalating construction costs, tighter funding conditions, and confidence in meeting return hurdles are increasingly determining which projects proceed, and when. The Build to Rent pipeline was deeper than it was deliverable under current conditions, reshaping where risk and opportunity sit.
“Capital will increasingly concentrate around projects that are genuinely ready to proceed: well-capitalised, well‑located , and able to absorb today’s cost and funding settings. The result is a more competitive environment for these projects, but also a lower risk of near‑term oversupply than headline approval numbers imply.”
“This points to delivery being phased and selective, which should continue to support rental growth and the performance of stabilised Build to Rent portfolios.”
Dylan Gray, Director – Economics and Property, Urbis
The market is self‑filtering with only the most feasible projects moving through to delivery, a constructive outcome for existing and near‑term stock.
“With national vacancy rates tightening further, interest rates remaining elevated, and new supply constrained by both market fundamentals and policy settings, I anticipate continued upward pressure on rents.”
Dylan Gray, Director – Economics and Property, Urbis
