Property & Capital Copy RSS link Link copied to clipboard!
BPF reports build-to-rent planning consent delays exceed statutory limits by 150%
The British Property Federation (BPF) reports that securing planning consent for build-to-rent schemes in the UK now takes an average of 15 months, 150% longer than the statutory time limit. Delays in London have doubled since 2020, reaching 15 months by 2026. Despite a rise in applications, the number of homes in construction has fallen for nine consecutive quarters. The BPF and Savills argue that planning reforms and a lack of sufficient planners are hindering delivery, calling for tax barriers to be removed and Section 106 requirements reduced to meet government housing targets.
UK build-to-rent investment reaches highest Q1 since 2022
UK build-to-rent investment volumes hit £795 million in Q1 2026, the highest first quarter since 2022, according to Savills research. Activity was driven by investors acquiring operational stock, with 68% of investment focused on this category. Over three-fifths of these deals were in London. Pension Insurance Corporation purchased Ebb and Flow in Reading, the largest operational asset acquisition outside central London on record. While single-family housing investment started slower, Savills anticipates strong Q2 numbers. Despite record investment levels in the sector last year, urban high-rise development challenges have caused a 11% fall in units under construction across core cities.
Geopolitical tensions could affect Birmingham property market
Geopolitical tensions, particularly in the Middle East, are influencing the Birmingham property market through increased borrowing costs and investor caution. While house prices remain flat at £231,000, rental demand stays resilient with rents rising 3.7% annually. The Bank of England's March 2026 summary highlighted how conflict drives energy prices and inflation uncertainty. Despite global risks, Birmingham retains defensive strengths including affordability relative to the UK average, a robust rental market, and a £19bn investment pipeline in the West Midlands. Commercial activity remains solid, though uncertainty may delay transactions and make buyers more selective.
Benefitty launches tenant rewards platform to boost landlord income
Benefitty, a new tenant benefits platform, has launched in the UK to provide discounts to renters and generate ancillary income for landlords and build-to-rent operators. The platform connects landlords with over 90 retail partners, sharing revenue without requiring rent increases or upfront investment. Quintain is confirmed as the first operator partner. Founder David Duggan states the model creates a win-win-win scenario for tenants, landlords, and retailers. The sector saw over £5bn invested in build-to-rent in 2025.
UK retail money shifts to international REITs amid market derating
Over the past 12 months, UK retail investors have redirected capital from domestic REITs to international REITs due to prolonged derating of UK-listed real estate funds, political uncertainty, and high interest rates. European commercial leases, often indexed to inflation, offer structural advantages, while supply shortages in European markets support rental income growth. M&A activity indicates undervaluation of European assets. The trend reflects a search for income that keeps pace with inflation and valuations, though currency and geopolitical risks remain concerns.
Limited company landlords target higher yields despite rising costs
A Kensington Mortgages survey reveals that 84% of UK limited company landlords expect yields to increase within 12 months, driving expansion plans despite rising mortgage and compliance costs. While 77% anticipate higher mortgage rates and 81% report increased running expenses, confidence remains high with 89% expressing optimism about the sector. Landlords are diversifying into corporate lets and larger HMOs, noting that company-held properties currently offer marginally higher gross yields than personal holdings.
Kensington Mortgages survey finds BTL investors remain committed as yields show signs of improvement
A Kensington Mortgages survey indicates 89% of buy-to-let landlords feel confident about the sector, with 84% anticipating higher yields. Despite rising operating costs and regulatory pressures, 38% plan to grow their portfolios. Interest rates remain the primary factor shaping confidence. Most landlords maintain or expand holdings, with a focus on core residential stock and future diversification into corporate lets.
NHBC and Leaf Living strengthen partnership to support single-family build to rent growth
NHBC has broadened its commercial partnership with Leaf Living to support growth in the single-family build to rent sector. The collaboration aligns NHBC's home warranty expertise with Leaf Living's delivery of high-quality, professionally managed rental homes. Leaf Living, founded by Blackstone Real Estate and Regis Group, aims to expand its portfolio of over 1,500 suburban properties. The partnership aims to raise construction standards and protect long-term asset value in the rapidly expanding UK build to rent market.
UK house prices rise 1.2% while rental growth eases to four-year low
UK house prices increased by 1.2% in the year to February, reaching an average of £268,000, according to Office for National Statistics data. Average private rents rose by 3.4% to £1,377 pcm in the 12 months to March 2026, marking the weakest annual rise in four years. Industry leaders from Propertymark, Zoopla, Douglas & Gordon, and Knight Frank noted market resilience despite economic uncertainty, the Middle East conflict, and upcoming regulatory changes under the Renters' Rights Act. Regional variations were significant, with rent inflation highest in the North East and lowest in London.
UK build-to-rent sale volumes fall to lowest levels since 2017
JLL data reveals UK build-to-rent (BTR) transaction volumes in Q1 2026 totalled £736m, the lowest quarterly figure since 2017. Multifamily investment fell to £257m, while single-family housing reached £479m. Key transactions included Pension Insurance Corporation's £200m acquisition of Ebb & Flow in Reading and £300m investment by Kennedy Wilson and Canada Pension Plan Investment Board. JLL attributes the slump to geopolitical uncertainty and a shrinking development pipeline, though investment in student housing reached a record £2.2bn.
Landbay poll reveals UK landlords lack confidence in planning reform
Specialist buy-to-let lender Landbay reports that 77% of UK property investors believe planning reforms will not positively impact their businesses. Only 13% expect new purchase opportunities, while 9% anticipate increased demand. Nearly half of respondents (47%) state reforms alone cannot solve the housing crisis, citing construction sector skills shortages as a primary barrier to meeting government targets.
UK build-to-rent investment slows as investors favour income
Investment into the UK build-to-rent sector slowed in the first quarter of 2026, with £679m deployed across 12 deals, marking the quietest start since 2018. Investors prioritised stabilised, income-producing assets due to market uncertainty and regulatory pressures. While operational assets accounted for 61% of investment, new starts fell as rising costs and viability issues constrained delivery, particularly for urban high-rise schemes. Knight Frank reported that despite the slowdown, limited supply is expected to support rental growth.
Knight Frank reveals UK build-to-rent investment volumes fall nearly 40% in Q1
Knight Frank data shows UK build-to-rent investment volumes dropped 38.3% year on year in Q1, reaching £679m across 12 deals, the lowest since 2018. The slowdown is attributed to changing regulation, increased costs, and geopolitical volatility affecting gilt yields. While completed stock rose 27%, homes under construction fell 10%. Oliver Knight of Knight Frank noted a significant opportunity for investors due to low new supply, despite challenges in planning consents and economic conditions.
Birmingham established as UK's largest regional Build to Rent market
Birmingham has become the UK's largest Build to Rent market outside London, with nearly 25,000 homes complete or under construction and 15,000 in the pipeline. Supported by over £370 million in recent investment and a 30% pipeline growth, the city attracts international investors. The sector is maturing towards professional operational management, driven by rising rental values, a young demographic, and regulatory changes like the Renters Rights Bill. JLL's 'Big Six Residential Development Report 2026' confirms Birmingham's leading position.
UK house price growth slows to 1.3% as regional divide widens
UK annual house price inflation slowed to 1.3%, down from 1.8% a year ago, with the average home price reaching £271,700 according to Zoopla. Northern regions outperformed southern markets, with Northern Ireland leading at 6.7% growth while London and the South East saw marginal falls of 0.2%. Industry experts attribute the stagnation in southern areas to increased supply, geopolitical tensions, and mortgage rate pressures, noting that the market remains selective rather than stalled.
JLL predicts rebound in UK regional office markets as demand rises
JLL forecasts a 15% increase in office take-up to 4.5 million sq ft in the UK's big six regional markets (Birmingham, Bristol, Edinburgh, Glasgow, Leeds, Manchester) in 2026, driven by strengthening occupier demand and tightening supply. Prime vacancy rates are below 2%, while overall vacancy stands at 7.5%. The report highlights a supply-demand imbalance leading to rising prime rents, which are expected to reach £60/sq ft by 2030. Employment growth in these cities is forecast to outpace the UK average through 2030.
Landlord market driven by structure and control rather than opportunity
According to the Property118 Landlord Sentiment Survey Q1 2026, decisions within the private rented sector are increasingly driven by structure, control, and long-term planning rather than opportunity. Based on 2,380 responses, only 6.8% of landlords plan to expand portfolios, while many are reducing or holding assets. The data indicates a shift towards more measured activity, with owners focusing on ownership structure, tax treatment, and risk management instead of acquisition.
Property investors adapt strategy amid Renters' Rights Act reforms
Investec surveyed UK property sector clients regarding the Renters' Rights Act, expected to implement in May 2026. Established investors and larger firms plan to maintain or expand involvement, viewing the regulatory shift as an opportunity for professionalisation. While some private landlords may exit, institutional investors favour build-to-rent and co-living solutions. Larger firms are expected to absorb compliance costs, potentially driving market consolidation and higher rents over the long term.
UCL researchers find overseas ownership of UK single homes has fallen
UCL researchers report a 17 per cent drop in overseas ownership of single properties in England and Wales between 2015 and 2025, attributed to government transparency drives. While single home ownership declined, investment in multi-property units increased by eight per cent. The study, published in Environment and Planning B, utilises a new algorithm to analyse data from the Overseas Companies that Own Property in England and Wales Dataset. Findings indicate a shift away from ultra-luxury detached homes towards apartment complexes, with London remaining the primary investment hotspot. The research highlights the impact of policies like the Economic Crime and Corporate Transparency Act on reducing economic crime and speculative inflation.
UK residential transactions rise 1% in March 2026 despite 41% year-on-year drop
HMRC reported seasonally adjusted UK residential transactions reached 104,070 in March 2026, a 1% increase from February 2026. However, figures are 41% lower than March 2025, attributed to a surge in activity last year ahead of SDLT threshold changes. Industry experts note the data reflects policy timing rather than market deterioration, though concerns remain regarding geopolitical uncertainty and high borrowing costs affecting buyer and seller confidence.