UK build-to-rent investment reaches record £2.2bn in Q2
Savills research found the UK build-to-rent sector attracted £2.2bn of investment in Q2 2026, the strongest second quarter on record.
The UK build-to-rent sector attracted £2.2bn of investment in Q2 2026, marking the strongest second quarter on record, according to research from Savills.
The international real estate adviser said the volume of capital deployed meant total 2026 investment was already ahead of the end of Q3 totals recorded in 2023, 2024 and 2025, with 2 quarters of the year still remaining.
Savills said operational assets continued to attract significant investor interest, including Morgan Stanley’s acquisition, alongside Ridgeback, of the private rented sector arm of London & Quadrant Housing Trust for more than £1.045bn.
The portfolio comprises nearly 3,200 homes and represents the largest acquisition of operational build-to-rent stock to date. Greystar also acquired 904 homes at Elephant Park for approximately £500m, which Savills said showed confidence in London’s long-term investment fundamentals.
According to Savills, the Morgan Stanley and Greystar deals rank among the 3 largest build-to-rent transactions ever recorded in London.
The research also found North American capital accounted for 60% of total investment in the first half of 2026. Savills said North American investors had been active in UK build-to-rent for several years, but the 2 landmark London transactions completed in 2026 had accelerated the trend.
Domestic investors accounted for 35% of investment in H1 2026, reversing the longer-term trend seen over the 5 years to 2025, when UK capital dominated the market with an annual average share of 54%.
Savills said North American appetite had been evident across both suburban rental housing and urban apartment schemes, reflecting the scale of the UK’s supply-demand imbalance and the resilience of the residential investment market.
Davina Clowes, head of London residential investment at Savills operational capital markets, said: “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.”
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