International real estate advisor Savills reports that more than £900 million was invested in the UK Build to Rent (BTR) sector in the third quarter of 2026, taking year-to-date investment to more than £4 billion – above the level recorded at the same point in any previous year.
In each of the past three years, Q4 has accounted for the largest share of annual investment. With a full quarter still to come, 2026 already ranks as the sixth highest year on record, suggesting that the sector is well placed to achieve a new annual investment record.
Operational assets continue to attract significant investor interest, highlighted by Border to Coast Pensions Partnership’s acquisition of a portfolio of 866 Single Family Housing (SFH) homes from Leaf Living, which was founded by Blackstone and Regis. With a combined value of c.£400 million, the Savills advised acquisition represented the largest single transaction in the UK SFH sector so far this year.
According to the advisor, development funding activity was concentrated outside London, with almost £300 million committed to suburban SFH schemes across five regions in England, highlighting the sector’s growing geographic reach. Royal London also agreed to forward fund 111 houses and 173 apartments in Newton Heath, Manchester, although the funding environment for city centre development remains challenging.
Savills research also shows that rental growth was exceptionally strong during the summer. The Renters’ Rights Act came into force in May and has led to an acceleration in rents across England.
England’s largest cities recorded stronger rental growth in the three months to August 2026 than their respective historic averages. Birmingham was the exception, where high levels of rental supply limited landlords’ ability to raise rents. This pattern extended across much of the country, with 72% of English local authorities recording stronger-than-average rental growth during the summer.
Guy Whittaker, Head of Build to Rent Research at Savills, comments: “The acceleration in rental growth seen over the summer is likely to reflect a one-off adjustment in rents, rather than a sudden increase in tenant demand. Under the new legislation, landlords can no longer accept offers above the advertised rent. As a result, many have taken the opportunity to rebase asking rents to ensure they reflect prevailing market values.”
Piers de Winton, Head of National Residential Investment & Single Family at Savills, adds: “Investment during the first nine months of the year provides encouraging evidence that 2026 could be a record year for the UK Build to Rent sector. Single Family Housing has been a particularly strong driver of activity, with investors continuing to pursue opportunities, underpinned by long term demand for high quality family homes. The growing scale and geographic reach of transactions also demonstrates the increasing maturity of the SFH sector and its ability to support delivery across a broad range of UK markets.
“Importantly, this capital is helping to increase the supply of professionally managed homes at a time when demand significantly outpaces availability. Continued investment in the sector will have a vital role to play in delivering the housing urgently required in the UK.”
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