The UK build-to-rent (BTR) sector attracted £2.2 billion of investment in Q2 2026, marking the strongest second quarter on record.

Research from Savills shows that halfway through the year, total 2026 investment was already ahead of the end of Q3 totals recorded in 2023, 2024 and 2025.

Two recent deals rank among the three largest BTR transactions ever recorded in London; Morgan Stanley acquired the PRS arm of London & Quadrant Housing Trust with a portfolio of nearly 3,200 homes for just over £1 billion, while Greystar acquired 904 homes at Elephant Park for £500 million.

This trend of North American investment is accelerating, with US capital accounting for 60% of total investment in the first half of the year, says Savills. By contrast, domestic investors accounted for 35% of investment, reversing the longer-term trend seen between 2020 and 2025, when UK capital dominated the market with an annual average share of 54%.

Scale

Davina Clowes, head of London residential investment, says the scale of capital deployed so far this 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,” she adds.

The number of completed BTR homes across the UK has increased by 11% over the last year, with cumulative completions rising from 132,161 units in the first quarter of 2025 to 147,670 in the first quarter of 2026, reports Zero Deposit.

BTR properties achieved an estimated rental premium of 12% in 2025, almost double the 6% premium in 2016, meaning that the average monthly rent across the UK’s build-to-rent sector is £1,546, compared with £1,377 across the wider PRS.

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