New figures show a shift in where capital is flowing across the rental sector
UK Build to Rent (BTR) investment reached £4.7 billion in 2025, marking a 14% year-on-year increase and signalling a measured recovery in the sector, according to preliminary data from global real estate adviser CBRE.
The figures show a shift in the market’s composition. Single-family BTR investment volumes reached £2.7 billion, up 56% year-on-year and more than double the previous year’s total. Multifamily BTR investment, by contrast, fell 16% year-on-year to £1.97 billion.
By share of total investment, single-family BTR accounted for 58%, while multifamily BTR represented 42%. Single-asset transactions contributed £2.69 billion, with portfolio deals totalling £1.93 billion.
The sector’s largest transaction took place in the fourth quarter, when Northern LGPS and LPPI acquired PRS Holdco for £1.1 billion. The deal formed part of a strong final quarter that saw £1.56 billion in single-family BTR transactions and £563 million in multifamily BTR deals.
“Our figures show attraction to the UK market remains strong and, looking ahead to 2026, we anticipate a continuation of increased transactional activity, as cautious optimism manifests into positive sentiment across the Living sector,” said Andrew Saunderson, head of UK living capital markets at CBRE.
Other notable transactions in 2025 included Gatehouse Living Group and joint venture partner TPG Real Estate’s sale of the 610-home Start Living portfolio to Lloyds Living. Penta and Ballymore formed a joint venture to build 680 homes at Isle of Dogs and Nine Elms, while Blackstone completed a portfolio sale to Placefirst in the South East.
The sector’s performance comes amid a broader shift in the UK rental market, where Build to Rent has benefited from constrained supply and solid rental demand. The model has gained ground as some private landlords exit the sector.
Looking ahead, CBRE data shows £1.9 billion of BTR investment is currently under offer, pointing to continued momentum into 2026. The preliminary figures suggest growing confidence among investors, with an increase in active participants in the market.
