en.Wedoany.com Reported - Data released by Savills shows that investment in the UK build-to-rent sector reached £2.2 billion in the second quarter of 2026, setting a new record for the period.
Total investment in the sector in the first half of this year has already surpassed the cumulative investment figures recorded at the end of the third quarter in 2023, 2024, and 2025, achieving a historic high for the first half in just six months.
Market transactions this quarter were dominated by large-scale asset acquisitions. Morgan Stanley and Ridgeback acquired the private rental division of London & Quadrant Housing Trust for £1.045 billion, involving nearly 3,200 homes, marking the largest-ever acquisition of an operational build-to-rent asset. Greystar purchased 904 homes at Elephant Park for approximately £500 million, further expanding its London portfolio. Savills noted that both transactions rank among the three largest build-to-rent deals in London's history.
The composition of investment sources has shifted significantly. In the first half of 2026, North American investors accounted for 60% of total UK build-to-rent investment, reflecting increased overseas capital interest in the UK rental market. Domestic investors represented 35% during the same period, reversing the trend of the past five years where domestic capital averaged 54% of annual investment. Savills stated that, driven by supply shortages and long-term confidence in the UK residential investment market, overseas demand is evident in both suburban rental housing and urban apartment development projects, with the UK property market demonstrating resilience amid inflation uncertainty.
Davina Clowes, Head of London Residential Investment at Savills Capital Markets, said that despite the challenging macroeconomic backdrop, the scale of capital deployed in the first half of the year indicates sustained demand for high-quality assets in prime locations. Guy Whittaker, Head of UK Build-to-Rent Research, added that North American capital has always been a significant source of investment for the UK build-to-rent sector, but activity in the first half of 2026 marks a notable acceleration of this trend.
Whittaker noted that investors are increasingly focusing on the full spectrum of rental living in the UK. With two quarters remaining this year, the sector is expected to remain active. He cited strong rental demand and the ongoing need for increased housing delivery across the UK as supporting factors, with investment activity running in parallel with discussions on broader rental market regulatory proposals. The overall performance of the build-to-rent sector in the first half of 2026 shows that institutional interest in UK residential property will persist, driven by tight housing supply and an influx of international capital seeking stable returns.
