UK build to rent investment hits £4.2bn

Single-family homes attracted more than £1bn from build to rent investors in the third quarter, with deals covering existing properties also drawing substantial sums.

Knight Frank’s initial findings from its latest UK Build to Rent market update put investment across the sector at £1.6bn for the third quarter.

That takes the amount committed in the first nine months of the year to £4.2bn.

Single-family housing accounted for 67% of third-quarter investment across 11 deals.

Single-family housing investment

Nick Pleydell-Bouverie, the firm’s head of residential investment, said: “Q3 feels like a real turning point for the market.

“While headline volumes were boosted by a handful of large portfolio deals, including the Border to Coast Pension Partnership £400m acquisition from Blackstone, we’re also seeing a broader pickup in activity as investor confidence begins to return.”

He added: “Single-family housing has been a standout once again, continuing to attract significant capital from UK and overseas investors, alongside growing interest from pension funds.

“Strong occupier demand and the sector’s increasingly established track record mean it remains firmly on investors’ radar.”

Existing properties attract investment

Investment in operational properties totalled £600m in the third quarter, representing 38% of the money invested.

Two large portfolio deals accounted for £500m of that spending.

Across the year so far, operational transactions made up 61% of investment.

However, Lizzie Breckner, head of build to rent research at Knight Frank, said the market remained highly selective given the macroeconomic backdrop.