## UK Build to Rent investment totals £4.7 billion in 2025

Investment in the UK’s Build to Rent (BTR) sector reached £4.7 billion in 2025, according to data from Knight Frank. This figure was bolstered by a late surge in dealmaking, with £1.7 billion invested in the final quarter alone. Despite a 9.1% decline from the record £5.1 billion invested in 2024, the 2025 total remains 23% above the long-term average, demonstrating sustained interest in purpose-built rental housing.

The year was marked by tighter financing conditions and broader economic pressures affecting the real estate market. However, the sector showed resilience, with investors adapting to these challenges by shifting capital towards different types of rental housing.

## Shift towards single family housing investment

A significant development in 2025 was the structural shift in investment focus. For the first time, single family housing (SFH) accounted for the majority of BTR investment, representing 55% of the total annual spend. This amounted to a record £2.6 billion invested across 44 deals, surpassing multifamily housing for the first time.

This trend reflects growing investor appetite for lower density, suburban rental stock, which may offer different risk and return profiles compared to traditional multifamily urban developments. Jack Hutchinson, partner in residential investments at Knight Frank, noted: “Record capital inflows and its growing share of completions underline investor confidence in the depth and resilience of the SFH sector.”

## Confidence returning amid challenges

Lizzie Breckner, head of BTR research at Knight Frank, commented on the sector’s performance: “Our latest analysis shows a sustained and growing appetite for purpose‑built rental housing, with £1.7 billion invested in Q4 alone. While annual volumes have softened, reflecting recent policy uncertainty alongside pricing, debt and development pressures, despite these challenges, confidence is gradually returning.”

This cautious optimism suggests that landlords and letting agents can expect continued interest and investment in the BTR market, albeit with careful attention to financing and regulatory conditions.

## Delivery trends and sector growth

In terms of completions, approximately 22,000 new BTR homes were delivered in 2025, around 20% fewer than the peak in 2024. Single family housing accounted for a quarter of these completions, the highest share ever recorded. Meanwhile, higher density multifamily housing completions fell sharply by 28% year on year, and co-living schemes declined by 33%, reflecting ongoing viability and regulatory challenges in large urban developments.

Despite the slowdown in completions, the operational BTR stock grew by 16% over the year, reaching 158,205 homes. A further 51,755 units are currently under construction, with the sector expected to surpass 200,000 completed homes within the next few years.

## Outlook for 2026 and implications for landlords

Looking ahead, Knight Frank forecasts just under 24,000 BTR completions in 2026, indicating a modest recovery in delivery following the softer year in 2025. For UK landlords and letting agents, this suggests a stabilising market with opportunities in both single family and multifamily rental sectors.

The shift towards single family housing may influence portfolio strategies, with increased focus on suburban locations and lower density properties. Understanding these trends will be important for landlords managing BTR assets or considering entering the sector.

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Suggested internal link anchors

– Build to Rent investment
– single family housing
– multifamily housing
– BTR completions
– rental property market
– purpose-built rental housing
– residential investments
– suburban rental stock
– co-living developments
– operational BTR stock
– property market outlook
– financing conditions in real estate

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TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/