Build-to-rent (BTR) investment activity fell 22% in H1 2025 compared with the same period last year, according to the latest data from JLL. The H1 figure was 11% down on the five-year average.
The fall was largely due to a slowdown in multifamily investments, which dropped significantly in Q2 2025 following robust activity in Q1.
Single-family housing accounted for 60% of build-to-rent investment activity in Q2 2025. More than £575m was invested in the single-family housing sector in Q2 bringing the H1 2025 total to more than £800m. JLL anticipates this trend will continue in Q3 with several significant deals completed or in the pipeline.
Approximately 10,600 BTR units are currently under construction, down from an average of 16,600 units between 2018 and the end of 2023.
Marcus Dixon, head of UK living and residential research at JLL, said: “Investment in the UK build-to-rent sector hit £2.2bn in the first half of 2025. The pendulum, which had swung firmly towards multifamily investment in Q1, shifted to single family in the second quarter.
“Viability challenges and difficulties in progressing schemes through the Gateway process are clearly impacting activity in the multifamily sector. While some investment has been redirected to single family, it’s worth noting that the quieter Q2 for multifamily followed two particularly active quarters. With numerous deals in the pipeline, we anticipate a potential uptick in activity as we move into the second half of the year.”
