Investment in UK Build to Rent has reached £4.2bn so far this year, with single-family housing driving activity.

Investors poured £1.6bn into UK Build to Rent during the third quarter of 2026, according to new figures from Knight Frank.

Single-family housing dominated activity, accounting for 67% of investment during the quarter. Investors committed more than £1bn across 11 deals.

Operational BTR assets also attracted significant capital. Investors spent £600m on operational assets during Q3, representing 38% of total investment.

Two large portfolio transactions accounted for £500m of that figure.

Operational transactions have now attracted 61% of all BTR investment this year. Knight Frank said investors increasingly favour established assets that can provide immediate rental income and scale.

One of the quarter’s largest transactions saw Border to Coast Pension Partnership acquire a £400m portfolio from Blackstone.

Lizzie Breckner, head of Build to Rent research at Knight Frank, said: “Investment activity in Q3 reflects continued confidence in the UK living sectors, particularly single-family housing, where investors are deploying capital at scale.

“While the market remains highly selective given the macroeconomic backdrop, capital continues to target opportunities with strong fundamentals.

“The rising share of operational transactions, which accounted for 38% of total investment in Q3 and 61% of spend so far this year, reflects investors’ focus on assets and operating platforms capable of delivering immediate scale, income and future rental growth.”

Nick Pleydell-Bouverie, head of residential investment at Knight Frank, described Q3 as a “real turning point” for the market.

He commented: “While headline volumes were boosted by a handful of large portfolio deals, including the Border to Coast Pension Partnership £400m acquisition from Blackstone, we’re also seeing a broader pickup in activity as investor confidence begins to return.

“Single-family housing has been a standout once again, continuing to attract significant capital from UK and overseas investors, alongside growing interest from pension funds.”

He added that strong occupier demand and the sector’s growing track record continue to attract investors.