Build to rent (BTR) investment in the UK exceeded £900 million in the third quarter of 2026, according to international real estate advisor Savills, taking year-to-date volumes above £4 billion. That is higher than at the same point in any previous year.
Q4 has accounted for the largest share of annual build-to-rent investment in each of the past three years. With a full quarter still to come, 2026 already ranks as the sixth highest year on record, a position that leaves the sector well placed to set a new annual high.
Single-family housing drives build-to-rent investment
Operational assets continue to attract build-to-rent investment, including Border to Coast Pensions Partnership's acquisition of 866 single-family housing (SFH) homes from Leaf Living, a platform founded by Blackstone and Regis. Valued at around £400 million, the deal was the largest single transaction in the UK SFH sector so far this year, and Savills advised on it.
Development funding concentrated outside London, according to the advisor, with almost £300 million committed to suburban SFH schemes across five regions in England. Royal London also agreed to forward fund, or finance ahead of completion, 111 houses and 173 apartments in Newton Heath, Manchester, although the funding environment for city centre development remains challenging.
Rental growth accelerates after Renters' Rights Act
Savills research also shows rental growth was particularly strong over the summer. The Renters' Rights Act came into force in May and has led to an acceleration in rents across England.
England's largest cities recorded stronger rental growth in the three months to August 2026 than their historic averages. Birmingham was the exception, where high levels of rental supply limited landlords' ability to raise rents. The pattern extended across much of the country, with 72% of English local authorities recording stronger-than-average rental growth during the summer.
"The acceleration in rental growth seen over the summer is likely to reflect a one-off adjustment in rents, rather than a sudden increase in tenant demand," said Guy Whittaker, head of build-to-rent research at Savills.
"Under the new legislation, landlords can no longer accept offers above the advertised rent. As a result, many have taken the opportunity to rebase asking rents to ensure they reflect prevailing market values."
"Investment during the first nine months of the year provides encouraging evidence that 2026 could be a record year for the UK Build to Rent sector," said Piers de Winton, head of national residential investment and single family at Savills.
"Single Family Housing has been a particularly strong driver of activity, with investors continuing to pursue opportunities, underpinned by long-term demand for high-quality family homes. The growing scale and geographic reach of transactions also demonstrates the increasing maturity of the SFH sector and its ability to support delivery across a broad range of UK markets.
"Importantly, this capital is helping to increase the supply of professionally managed homes at a time when demand significantly outpaces availability. Continued investment in the sector will have a vital role to play in delivering the housing urgently required in the UK."
