UK build-to-rent (BTR) investment activity hit a record high in the first half of 2024, according to the latest data from Knight Frank.
Total investment for H1 2024 was just over £2.6bn, surpassing the previous half-year high of £2.3bn set in 2021. The numbers were boosted by £1.3bn of activity recorded in Q2 2024 – a 38% year-on-year increase.
Knight Frank’s UK Build to Rent Market Update highlighted the growing popularity of single-family housing, which accounted for 56% of total investment by value in Q2. This was largely due to Vistry’s £580m sale of 1,750 single-family homes to Blackstone-backed operator Leaf Living.
The majority of deals recorded in Q2 (94%) were to fund the construction of nearly 4,000 new homes, totalling more than £1.2bn worth of investment.
There are currently 114,207 completed BTR homes across the UK in schemes with at least 75 units, a further 62,030 are under construction and 84,607 have full planning permission granted.
Lizzie Breckner, head of build-to-rent research at Knight Frank, said: “The BTR sector is evolving rapidly, with single-family housing emerging as a key growth area. Our analysis shows that by 2026, complete SFH supply will have more than doubled to just shy of 23,000 homes. This diversification within BTR is attracting a wider range of investors and meeting diverse tenant needs.”
David Shapland, a partner in the residential investment team at Knight Frank, added: “The robust investment volumes we’ve seen in the first half of 2024 demonstrate the continued appeal of the build to rent sector. Despite strong economic headwinds, investment volumes have reached unprecedented levels, signalling strong investor confidence in the long-term potential of purpose-built rental accommodation.
“A robust development pipeline, coupled with an improving economic backdrop and the emergence of pro-development polices from the new Labour government bodes well for the sector’s continued growth.”
