Investment into the UK Build to Rent sector reached £2.2 billion in the second quarter of 2026, marking the strongest second quarter on record, according to research from Savills.
The figures mean total BTR investment for 2026 has already surpassed the end-of-third-quarter totals recorded in 2023, 2024 and 2025, with six months of the year remaining.
Major transactions drive activity
The quarter was characterised by large-scale transactions, led by Morgan Stanley and Ridgeback’s £1.045 billion acquisition of the Private Rented Sector arm of London & Quadrant Housing Trust. The deal, comprising almost 3,200 homes, represents the largest acquisition of operational BTR stock to date.
Greystar expanded its London portfolio with the acquisition of 904 homes at Elephant Park for approximately £500 million. Savills noted the two transactions rank among the three largest build-to-rent deals ever completed in London.
Shift towards North American capital
The research highlights a notable shift in investment sources. North American investors accounted for 60% of total BTR investment during the first half of 2026, reflecting increased overseas interest in the UK rental market.
Domestic investors represented 35% of investment over the same period, reversing the trend seen over the previous five years when UK-based capital accounted for an average 54% share of annual investment.
Savills said overseas demand has been evident across both suburban rental housing and urban apartment developments, driven by continued supply shortages and long-term confidence in the UK residential investment market. This comes as the UK housing market shows resilience amid inflation uncertainty.
Davina Clowes, head of London residential investment at Savills Operational Capital Markets, said: “The scale of capital deployed in the first half of the year demonstrates the sustained demand for high-quality assets in well-connected locations, despite a challenging macroeconomic backdrop.”
Guy Whittaker, head of UK Build to Rent Research at Savills, added: “North American capital has been an important source of investment into UK Build to Rent for some time, but their activity in the first half of 2026 marked a significant acceleration of the trend.”
Market outlook
Whittaker noted that investors are increasingly looking across the full spectrum of UK rental living, and with two quarters of the year remaining, the sector is positioned for continued activity. He cited robust rental demand and an ongoing need to increase housing delivery across the UK as supporting factors. The investment activity occurs alongside broader discussions on rental market regulation proposals.
The BTR sector’s performance in the first half of 2026 indicates sustained institutional interest in UK residential property, driven by both domestic supply constraints and international capital flows seeking stable returns in the rental market.
