The Build to Rent Market
Overview
The UK Build to Rent (BTR) sector continues to demonstrate attractive investment dynamics to investors across both Multi Family (MF) and Single Family Housing (SFH) markets.
Well documented viability challenges across development as a whole, has meant that the majority of recent transactions have been for operating stock or innovative joint venture structures for MF assets.
SFH has proven to be a product offering market conducive returns which remains viable through a range of market conditions, with significant transactional activity across both operational and development stock.
The aspiration from both investors and developers to bring forward MF opportunities in difficult market and legislative conditions demonstrates the long-term confidence held in the sector. We expect to see continued multi-strategy approaches in bringing forward high density BTR into 2026.
SFH is proving attractive to both investors and developers in the current market, with investment returns and pricing aspirations aligned. We expect more capital to enter the sector into 2026 and a wider pool of developers attracted to the transaction structure and sales certainty offered by an investment sale.
Who is Active / Headline Deals
Notable activity in the MF market include, QuadReal Property Group fully acquiring Realstar’s Uncle brand in the UK and Europe, and also acquiring Realstar’s residential operating platform which currently manages nearly 6,000 units across the UK and Ireland, and Greystar acquiring Invesco Real Estate’s ‘Barking Wharf’ in East London, comprising 595 rental homes, paying around £170M for the asset.
SFH transactions include Lloyds Living’s acquisition of 610 rental homes from TPG Real Estate, totalling approximately £200M and Placefirst and Strata completing their second transaction of their joint venture, delivering 104 family homes in Bilborough, Nottingham. Picture Living, Thriving Investments’ PRS strategy, has committed around £36M of capital to deliver homes in areas of high rental shortage. Their latest acquisition being 41 homes in Grantham with developer Vistry Group. Lloyds Living have acquired 105 properties from Miller Homes in Houghton Conquest, South Midlands, all units will be made available under their Pathways Flex shared ownership scheme.
Direction of Travel
We anticipate a busy Q4 in the SFH sector, as investors and developers look to secure transactions before the end of the year.
We expect to see investors prioritising progressed, best quality MF assets with strong, experienced development partners and working with a range of stakeholders to bring forward developments on innovative structures.
Yields across both MF and SFH markets have remained stable over the past few quarters. We anticipate this will continue into 2026.
