UK Build to Rent investment picked up in the first three months of 2026, with £795 million transacted – the strongest first-quarter performance for the sector since 2022, according to Savills.
The figures point to a rebound in activity after a more subdued period, with investors returning to the market despite ongoing pressure from interest rates and construction costs.
Laura Skoda, director, London residential investment, Savills operational capital markets, said: “Activity has been driven primarily by investors acquiring operational stock, which has accounted for 68% of investment. Over three fifths of that were in London. With significant capital still targeting well-located, income-producing assets, we expect deal flow to remain strong as the year progresses.”
Beyond London, Pension Insurance Corporation purchased Ebb & Flow in Reading from Lincoln MGT, which was the largest acquisition of an operational asset outside of central London on record.
Following a bumper end to 2025, single family housing investment volumes had a slower start to 2026. However, with several large transactions currently progressing through the legal process, Savills expects to see strong Q2 numbers.
Figure 1: Operational stock accounted for 68% of investment in Q1 2026:
Richard Valentine-Selsey, head of European Living Research at Savills, added: “Across the UK’s 12 core cities, the total number of BTR units in the pipeline rose to c.108,000 at the end of Q1 2026. This was up 3% compared with a year earlier. However, the challenges facing urban high-rise development have continued to weigh on construction activity. The number of units under construction across the core cities fell by 11% between Q1 2025 and Q1 2026, due to completions outstripping new starts.
“This trend is likely to continue, with urban multifamily funding transactions remaining muted, as deals take longer to progress given headwinds from planning, building safety and construction cost inflation.”
Figure 2: The number of units under construction across Core Cities continues to fall:
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