Investment into the UK Build to Rent (BTR) sector reached a record £2.2bn in the second quarter of 2026, making it the strongest second quarter on record, according to new research from Savills.
The latest figures mean total BTR investment for 2026 has already exceeded the end-of-third-quarter totals recorded in 2023, 2024 and 2025, despite half the year still remaining.
The quarter was driven by a series of major transactions, including Morgan Stanley and Ridgeback’s £1.045bn acquisition of the Private Rented Sector arm of London & Quadrant Housing Trust. The deal, comprising almost 3,200 homes, is the largest acquisition of operational BTR stock to date.
Greystar also expanded its London portfolio with the acquisition of 904 homes at Elephant Park for around £500m. Savills said the two transactions rank among the three largest build-to-rent deals ever completed in London.
The research also points to a shift in the source of investment. North American investors accounted for 60% of total BTR investment during the first half of 2026, reflecting growing overseas appetite for the UK rental market.
Domestic investors represented 35% of investment over the same period, reversing the trend seen over the previous five years when UK-based capital accounted for an average 54% share of annual investment.
Savills said overseas demand has been evident across both suburban rental housing and urban apartment developments, underpinned by continued supply shortages and long-term confidence in the UK residential investment market.
Davina Clowes, head of London residential investment, Savills Operational Capital Markets, commented: “London continues to demonstrate its strength as one of the most attractive residential investment markets globally. The scale of capital deployed in the first half of the year demonstrates the sustained demand for high-quality assets in well-connected locations, despite a challenging macroeconomic backdrop. These transactions show the depth of investor conviction in the capital’s long-term fundamentals and the resilience of the UK BTR sector.”
Guy Whittaker, head of UK Build to Rent Research at Savills, added: “North American capital has been an important source of investment into UK Build to Rent for some time, but their activity in the first half of 2026 marked a significant acceleration of the trend. Investors are increasingly looking across the full spectrum of UK rental living, and with two quarters of the year still remaining, the sector is well positioned for another strong year. The fundamentals of the sector are strong, with robust rental demand and an ongoing need to increase housing delivery across the UK.”
