Build to Rent investment hits record levels amid Renters’ Rights Act impact
UK Build to Rent sector attracted over £900 million investment in Q3 2026, with year-to-date totals exceeding £4 billion. Rental growth accelerated following the May introduction of the Renters’ Rights Act, reshaping rent-setting practices across England.
Savills has reported that the UK Build to Rent (BTR) sector saw investment surpass £900 million in the third quarter of 2026, pushing the total investment for the year so far beyond £4 billion. This level of investment is higher than that recorded at the same point in any previous year, positioning 2026 as the sixth highest year on record for BTR investment, even with a quarter still remaining.
Historically, the fourth quarter has accounted for the largest share of annual investment in the sector, suggesting that 2026 could set a new record for annual BTR investment. This surge in investment reflects growing confidence in the sector despite ongoing regulatory changes affecting landlords and tenants.
Rental growth accelerates after Renters’ Rights Act introduction
Alongside investment trends, rental growth across England’s largest cities notably strengthened during the summer months of 2026. The Renters’ Rights Act, which came into force in May, has influenced this acceleration by changing how rents can be set and negotiated.
According to Savills’ research, 72% of English local authorities recorded rental growth above their historic averages between June and August 2026. This widespread increase was seen in most major cities, with the exception of Birmingham, where a high supply of rental properties limited upward pressure on rents.
Guy Whittaker, Head of Build to Rent Research at Savills, explained that the rental growth spike likely represents a one-off adjustment rather than a sudden rise in tenant demand. The Renters’ Rights Act prohibits landlords from accepting offers above the advertised rent, prompting many to rebase asking rents to align with prevailing market values.
Implications of the Renters’ Rights Act on rent setting and landlord strategy
The Renters’ Rights Act has introduced significant changes to rent negotiation, prohibiting landlords from charging more than the advertised rent. This has led to a recalibration of asking rents to reflect current market conditions rather than allowing landlords to seek higher rents through bidding or negotiation.
For landlords and letting agents, this means rent-setting strategies must be more precise and transparent. The ability to adjust rents mid-tenancy remains limited, so initial rent levels must be carefully considered to ensure they are competitive yet profitable. The Act also increases the importance of market research and understanding local rental dynamics.
In cities with high rental supply, like Birmingham, landlords may face challenges in raising rents despite the legislative changes. This highlights the need for landlords to monitor local market conditions closely and consider factors such as property condition, location, and tenant demand when setting rents.
Investment trends and regulatory context for landlords
The strong investment in Build to Rent reflects broader confidence in the long-term rental sector, which continues to evolve under new regulatory frameworks. The Renters’ Rights Act is part of a wider set of reforms aimed at improving tenant protections and stabilising rental markets.
For landlords, this environment demands greater attention to compliance and tenant engagement. The Act’s restrictions on rent increases and offers require landlords to maintain clear documentation and adhere strictly to advertised rent terms. Failure to comply could result in disputes or penalties.
Moreover, the investment surge in BTR developments suggests that large-scale, professionally managed rental properties are increasingly attractive to institutional investors. Smaller landlords may face competitive pressures but can also benefit from understanding these market shifts and adapting their portfolios accordingly.
What landlords should consider now in light of these developments
Landlords should review their rent-setting processes to ensure compliance with the Renters’ Rights Act and avoid accepting offers above advertised rents. Accurate and up-to-date market appraisals are essential to set rents that reflect current demand and supply conditions.
It is advisable to monitor local rental growth trends regularly, especially in areas with high supply, to anticipate potential challenges in rent increases. Maintaining thorough records of rent advertisements, tenant communications, and tenancy agreements will support compliance and dispute resolution.
Additionally, landlords may want to evaluate the benefits of professional property management or consider participating in Build to Rent schemes, which continue to attract significant investment and may offer economies of scale and regulatory expertise.
Keeping your rental properties compliant with evolving rent regulations
The Landlord Association (TLA) offers members access to compliance resources and practical guidance on adapting to the Renters’ Rights Act and related rental reforms. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to help landlords and letting agents organise rental documents, record key actions, and access up-to-date compliance information.
ORBIT’s features relevant to rent regulation include tools for managing rental agreements, recording rent advertisements, and tracking communications with tenants. These capabilities can help landlords maintain evidence of compliance with rent-setting rules and prepare for any regulatory inspections or disputes.
Exploring TLA membership provides landlords with ongoing support, including access to expert advice, compliance updates, and resources tailored to the changing regulatory landscape. Members can learn more about ORBIT BETA access and review TLA’s landlord membership options to enhance their property management practices.
Looking ahead, landlords should stay informed of further regulatory changes and market developments to ensure their rental strategies remain effective and compliant.
Sources: Landlord Today
TLA - The Landlord Association