£30bn flows into multifamily Build-to-Rent housing
5 months ago | 1 comments
Build-to-rent sector continues to surge
12:01 AM, 8th July 2026, 3 weeks ago
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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.
Tags:
build to rent, build to rent completions, Build to Rent Developments, build to rent investment, Zero Deposit
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Previous Article
Frozen LHA rates leave renters unable to afford PRS homes
Member Since April 2018 - Comments: 512
1:05 PM, 8th July 2026, About 3 weeks ago
Morgan Stanley, Ridgeback, US investment companies, foreign investors and pension funds!
Member Since September 2018 - Comments: 3668 - Articles: 5
3:59 PM, 8th July 2026, About 3 weeks ago
‘invested into the sector’ does not translate into rentals actually being built.
“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.”
Any how many of these units are still empty? Built is one thing, let is another.
The construction sector has/continues to take a belting so unless the investors plan to build accommodation themselves, there is nothing of any substance actually materially happening.
“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”
Hardly a significant % increase is it!
Member Since July 2023 - Comments: 25
8:16 PM, 8th July 2026, About 3 weeks ago
Amusing propaganda, Blackstone commisioned Vistry to build to rent and now it’s virtually bankrupt. There’s no money in build to rent and the big players have realised that. The only game left is bulk buying off developers who can’t sell because the government have gone out of their way to destroy the housing market while pretending to support it.
Won’t be long now, expect rocketing house prices and rents as people rush to secure somewhere to live.
Member Since April 2018 - Comments: 512
11:26 AM, 9th July 2026, About 3 weeks ago
Reply to the comment left by Mark W at 08/07/2026 – 20:16
Some good news for a change, hope its soon house prices will rocket from an unprecedented low and I can get out and make a small profit.
Member Since September 2018 - Comments: 3668 - Articles: 5
11:44 AM, 9th July 2026, About 3 weeks ago
Reply to the comment left by Mark W at 08/07/2026 – 20:16
agree Vistry is on the verge of needing a gvt bailout. The second biggerst housebuilder in the country is literally sinking.
The irony is they are waiting for the 35bn England Homes grant to be issued by the gvt and they hope that HA and councils will then use that to push on getting things build. The issue is costs are rising and labour rates increasing, so the HA/Councils wont get as many bricks for their bucks.
Plus the latest is that the 39bn is not going to be released at one time. The gvt have already made changes to that plan… It is going to be released over the next 10 years and in proportions to the HA/Councils that applied for it.
Bearing in mind a lot of Councils are selling off their existing stock to try and balance the books in light of the cost of just maintaining what they have plus make all the gvt demanded upgrades, just how many do they think are going to be straining at the leash to get their hands on this when Councils are generally required to provide match funding or a financial contribution of their own to successfully secure capital grants????
Moreover at lease 60% are supposed to be for social rent.
Why would you put in 50% of your own funds to build accommodation to then let it at such a lower rental rate it can never pay the outlay nor generate enough to maintain it either?
The £39 billion Social and Affordable Homes Programme is the government’s flagship investment for building 300,000 new social and affordable homes, with at least 60% designated for social rent.
Member Since September 2018 - Comments: 3668 - Articles: 5
11:50 AM, 9th July 2026, About 3 weeks ago
Reply to the comment left by Mark W at 08/07/2026 – 20:16
…are they only looking to bulk buy as they know at some point the direction simply has to change? Are they filling these newly acquired units with tenants though? doesn’t seem like it to me. Plenty if units still empty whoever owns them.
Vistry has also said they are looking ahead to only focus on 2/3 bed accommodation too. Further insight into the direction of travel.
Member Since October 2020 - Comments: 1274
4:47 PM, 9th July 2026, About 3 weeks ago
Thats quite a turnaround from a few months ago when the btr sector was reportedly in the doldrums. I winder if we’re getting the full and honest picture here.
Member Since May 2024 - Comments: 151
7:16 PM, 11th July 2026, About 2 weeks ago
The only build to rents I’ve seen being built (in many towns) are blocks of ‘executive’ flats. Tiny units worth sod all but with posh kitchens and bathrooms for single higher earners and a higher margin. The government thinking that this will help families is on par with their usual level of intellect…