12:01 AM, 8th July 2026, 47 seconds ago
The build-to-rent sector is showing no signs of slowing, with new research pointing to continued expansion.
Data from Zero Deposit suggests investment in the sector remains strong, as it continues to draw in investors and fuel demand for purpose-built student accommodation.
Property management firm Touchstone says the sector is set to keep growing, especially now the Renters’ Rights Act is in force.
Significant rental premium
According to the data, the number of build-to-rent completed homes across the UK has increased by 11.7% over the last year, with cumulative completions rising from 132,161 units in the first quarter of 2025 to 147,670 in the first quarter of 2026.
The sector’s growth is underpinned by its ability to command a significant rental premium over the wider private rented sector.
The data shows build-to-rent properties achieved an estimated rental premium of 12.3% in 2025, almost double the 6.5% premium recorded in 2016.
Average monthly rent across the UK’s build-to-rent sector now stands at £1,546, compared with £1,377 across the wider private rented sector.
The premium is even more pronounced in London, where the average build-to-rent property commands £2,560 per month, compared with a wider market average of £2,280.
Build-to-rent continues to go from strength to strength
Industry experts say the growth of the build-to-rent sector has been further accelerated by the introduction of the Renters’ Rights Act, which is limiting some traditional risk-management practices and driving demand for alternative solutions.
Insurance-backed guarantor products are now coming into sharper focus, particularly as many build-to-rent schemes attract international renters, overseas students and young professionals who may struggle to meet traditional affordability checks or provide a personal guarantor.
Sam Reynolds, CEO of Zero Deposit, said: “The build-to-rent sector continues to go from strength to strength, with increasing levels of investment, growing stock numbers and consistently strong tenant demand. In addition, the ability to command a rental premium reflects the quality, service and experience that build-to-rent operators provide.
“As the sector expands, rental growth and assets under management continue to increase, making the protection of rental income more important than ever. Many operators serve tenant groups who may not have access to a traditional guarantor despite being financially capable renters.”
Harpreet Dosanjh, associate director and head of build-to-rent at Touchstone, said: “The continued growth of the build-to-rent sector, alongside rising rental premiums, is reinforcing the importance of protecting rental income and maintaining operational efficiency across larger and more complex portfolios.
“As the sector expands, operators are also adapting to an evolving regulatory landscape shaped by the Renters’ Rights Act, while continuing to serve a diverse customer base including students, young professionals and international renters who may not have access to a traditional UK guarantor.”
Millions of pounds invested in build-to-rent sector
The data also reveals that the first quarter of 2026 saw £795.4 million invested into the UK build-to-rent sector, marking a 1.1% increase compared with the same period last year.
This follows a strong performance throughout 2025, when annual investment reached £5.3 billion, 6.6% higher than 2024’s total of £4.97 billion.
