The UK's Build-to-Rent (BTR) sector has reached a record high, attracting £2.2 billion in investment during the second quarter of 2026 – a milestone that eclipses all previous quarters on record, according to Savills' latest research. This unprecedented influx of capital exceeds total BTR investments for full years in 2023 and 2025 and could reach historic highs by year-end.
The sector's robust performance was underpinned by two significant deals worth £1.045 billion and £500 million respectively, as Morgan Stanley and Ridgeback acquired the Private Rented Sector division of London & Quadrant Housing Trust and Greystar expanded its London footprint with Elephant Park. These transactions are among the three largest BTR deals ever completed in the capital, according to Savills.
A notable shift in investor profiles has been observed, with North American investors contributing 60% of total BTR investment during the first half of 2026 – reversing a five-year trend where UK-based capital typically accounted for an average of 54%. This increased overseas appetite is evident across both suburban and urban developments.
Savills highlights that international demand is driven by supply shortages in the UK housing market and investors' long-term confidence in the sector's resilience. Davina Clowes, head of London residential investment at Savills Operational Capital Markets, noted that London remains a global hub for residential investments, citing the scale of capital deployed as evidence of investor conviction.
Guy Whittaker, head of UK Build to Rent Research at Savills, added that North American activity signifies an acceleration in overseas capital and underlines investors' exploration of full-spectrum rental options across the UK. He emphasised that fundamental drivers – including robust rental demand and housing delivery needs – remain strong.