The UK’s build-to-rent (BTR) sector could almost double in value over the next five years, reaching £126bn by 2028, according to new research from Knight Frank.
The firm’s data shows the sector’s total value has doubled in the four years since 2019 – when it was worth £35bn – to £71bn in 2023. Knight Frank said soaring demand for rental homes is leading developers to deliver more stock, which is in turn pushing up the sector’s overall value.
Guy Stebbings, head of operational build-to-rent at Knight Frank, said: “The UK’s BTR sector is experiencing a remarkable surge in overall worth, with stock doubling in total value over the past four years. This trend reflects growing investment volumes based on rising demand for rental homes across the UK, underpinned by changing lifestyle preferences and housing market dynamics.
“The urgent need for rental housing in the UK reinforces the ‘social good’ being provided by investors who are accelerating delivery of much needed stock. Our prediction that the sector’s total value will almost double again by 2028, testament to its ongoing strength and ability to meet the evolving needs of renters.”
Lizzie Breckner, head of build-to-rent research at Knight Frank, added: “The burgeoning BTR sector reflects a robust investment landscape and a growing appetite for more choice and flexibility in rental housing. Looking ahead, we anticipate strong capital inflows, further fuelling the sector’s expansion.”
