BLOGS

A pipeline building momentum across the country

Build to Rent has moved from a niche institutional product to a mainstream delivery route for UK rental housing, and the planning system is registering the shift. REalyse planning data shows that between 2021 and 2023 alone, councils granted consent for tens of thousands of BTR units nationally, with the Rest of UK regions consistently outpacing London on both application volume and units approved. In 2021, for example, regional councils granted 96 BTR applications totalling over 16,500 units, more than double London's 23 approvals and around 6,700 units in the same year.

That regional tilt has held steady since. Cities such as Manchester, Birmingham, Leeds and Bristol have become the backbone of BTR delivery, offering developers larger sites, more permissive planning environments and stronger yield profiles than the capital. For investors and lenders assessing where rental supply is genuinely coming through, the message from planning registers is clear: the regions, not London, are where BTR is scaling fastest.

Why the "approvals wave" data needs context

Looking purely at the most recent one to two years, granted BTR volumes appear to soften. That is a function of planning process timing rather than a genuine slowdown in demand: many schemes submitted in 2024 and 2025 are still working through committee and are recorded as "in progress" rather than "granted." REalyse's live planning tracker currently shows 92 BTR applications in progress across the Rest of UK, representing roughly 20,600 proposed units, alongside 34 applications and over 10,300 units still awaiting decision in London.

Combined, that is a near-term pipeline of more than 30,000 BTR units sitting with councils right now, on top of everything already consented and under construction. For developers and investment committees, this is the number that matters more than any single year's grant total: it shows the addressable near-term supply that will convert into standing rental stock over the next two to four years, subject to determination timelines and viability negotiations.

Investment case: regional yields outperform, London offers scale and liquidity

The planning pipeline is only half the story; the underlying income case is what continues to draw institutional capital into the sector. REalyse rental listings data (BTR-flagged flats, outlier yields above 20% excluded) shows average gross yields of approximately 6.74% across Rest of UK BTR stock, compared with around 5.15% in London.

That yield gap reflects the classic trade-off institutional investors are underwriting for:

• London BTR — average asking rents of roughly £2,600 per month, underpinned by deep tenant demand, strong rental growth history and superior long-term liquidity, but a lower entry yield.

• Regional BTR — average asking rents nearer £1,450 per month, but materially higher gross yields, reflecting lower land and construction costs relative to achievable rents.

For funds and lenders balancing income return against asset liquidity, this split explains why capital continues to flow into both ends of the market simultaneously: London anchors portfolios with scale and exit optionality, while regional cities deliver the income performance that keeps blended fund yields competitive against other real assets.

What this means for developers, lenders and agents

For developers and investment managers, the regional approval rate signals where councils are proving more willing partners on density, tenure mix and affordable housing contributions — useful intelligence when stress-testing site appraisals or GDV assumptions in a new local authority area.

For lenders and credit teams, the scale of the in-progress pipeline is a signal to watch competitive supply building in specific postcode districts before committing to development finance or forward-funding structures, particularly in regional cities where several large schemes may be progressing through committee concurrently.

For agents and asset managers, rising BTR completions mean more purpose-built rental stock entering local comparables sets. Tracking achieved rents and days-to-let against this incoming supply will be increasingly important for accurately advising landlords and institutional clients on pricing strategy as new schemes reach practical completion.

Outlook

The direction of travel is unambiguous even if the annual "granted" figures are lagged by planning determination timelines: BTR remains one of the most active corners of UK residential development, with a live pipeline exceeding 30,000 units currently before councils. As more of these schemes clear committee and reach stabilised operation, expect the yield and rent data to sharpen further — giving investors, lenders and agents a clearer read on where the next wave of institutional rental stock will land, and at what price.