UK Build to Rent Sector Sees Record Investment of £1.3 Billion in Q2 2024

Knight Frank research shows a 38% year-on-year increase in investment into the UK's build to rent sector, reaching £1.3 billion in the second quarter of 2024.

Investment in the UK's build-to-rent (BTR) sector has seen a significant increase, reaching over £1.3 billion in the second quarter of 2024. This marks a 38% year-on-year growth, according to research conducted by Knight Frank. The total investment for the first half of 2024 has now surpassed £2.6 billion, exceeding the previous half-year high of £2.3 billion recorded in 2021.

Single-family housing has emerged as a key driver in the sector, accounting for 56% of the total investment by value in Q2. This surge was largely fueled by Vistry's £580 million sale of 1,750 single-family homes to Blackstone-backed operator Leaf Living. The majority of deals in Q2, amounting to 94%, were directed towards funding the construction of nearly 4,000 new homes, with a total investment value exceeding £1.2 billion. In contrast, only 6% of deals were focused on the purchase of operational assets, totaling nearly £80 million.

As of now, there are 114,207 completed BTR homes across the UK in schemes with at least 75 units. Additionally, 62,030 homes are currently under construction, while 84,607 have received full planning permission, bringing the total size of the sector to 260,844 homes. Notably, over 11,000 new BTR homes have been completed in the current year. If this delivery pace is maintained in the second half of the year, it is poised to be a record-breaking year for BTR delivery.

The UK's BTR sector has experienced a substantial influx of investment, with single-family housing playing a pivotal role in driving growth. The sector's robust performance in the first half of 2024 indicates a promising outlook for the remainder of the year.