The UK’s build to rent (BTR) sector could almost double in total value over the next five years, reaching £126bn by 2028, new analysis has revealed.

Knight Frank research found that the total value of existing and pipeline BTR stock has already doubled over a four-year period; the firm valued the sector to be worth £35bn in 2019, increasing to £71bn in 2023.

There are currently 90,000 completed BTR homes across the UK in schemes of at least 75 units. An additional 67,000 units are under construction and 74,000 have full planning permission, bringing the total volume to over 230,000 homes.

In total, £698m transacted in Q3 2023, taking year-to-date investment to £2.7bn.

Guy Stebbings, head of operational build to rent at Knight Frank, said: “The UK’s BTR sector is experiencing a remarkable surge in overall worth, with stock doubling in total value over the past four years. This trend reflects growing investment volumes based on rising demand for rental homes across the UK, underpinned by changing lifestyle preferences and housing market dynamics. 

“The urgent need for rental housing in the UK reinforces the ‘social good’ being provided by investors who are accelerating delivery of much needed stock. Our prediction that the sector’s total value will almost double again by 2028 is testament to its ongoing strength and ability to meet the evolving needs of renters.”

Lizzie Breckner, head of build to rent research at Knight Frank, commented: “The burgeoning BTR sector reflects a robust investment landscape and a growing appetite for more choice and flexibility in rental housing. Looking ahead, we anticipate strong capital inflows, further fuelling the sector’s expansion.”