The UK build-to-rent sector recorded £2.2bn of investment activity in Q2 2026 – the strongest second quarter on record, according to new data from Savills.
At the end of H1, total 2026 investment is already ahead of the end of Q3 totals recorded in 2023, 2024 and 2025, with two quarters of the year still remaining.
Operational assets continue to attract significant investor interest, highlighted by Morgan Stanley’s acquisition, alongside Ridgeback, of the private rented sector arm of London & Quadrant Housing Trust for more than £1.045bn.
Savills’ research also highlights a notable pattern in the sources of capital targeting the sector. In H1 2026, North American capital accounted for nearly two-thirds of total investment, at 60%. By contrast, domestic investors accounted for 35% of investment in H1.
Davina Clowes, head of London residential investment, 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 BTR 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.”
