UK investors have pledged £3bn in record-breaking investment to the build-to-rent (BTR) sector in the first half of 2026, according to JLL. This milestone – a 28% increase from the same period last year and 6% above the five-year average – underlines the sector's resilience in the face of ongoing economic uncertainty.
Three substantial deals in the second quarter, including L&Q's £1.2bn acquisition of the Metra Living portfolio (3,200 homes) and Blackstone's disposal of around 1,000 single-family homes from its Leaf Living business for approximately £600m, drove investment to £2bn – a significant contributor to the overall figure.
Notwithstanding the substantial investment, funding for new multifamily development has reached a decade-low. JLL reported that forward funding, forward purchases, and land acquisitions comprised just 10% of multifamily investment in H1 2026, down from previous years.
Karl Tomusk, an associate in UK living research at JLL, noted that even compared to the challenging development landscape over the past few years, 'the current situation is staggering'. He highlighted that ongoing challenges will continue to impact developers' ability to bring forward new schemes, despite a growing number of completed portfolios.
The BTR sector's investment performance is expected to have a net positive effect on the UK economy, particularly for households and businesses involved in the sector. However, potential limitations on new development may constrain long-term growth, affecting supply and demand in multifamily housing markets.