Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

UK Build-to-Rent Investment Hits £3bn in Strong First Half of 2026

Investment in the UK build-to-rent (BTR) sector reached £3 billion during the first half of 2026, according to new figures from JLL. This marks the second-strongest start to a year on record for the sector, with the total 28% higher than the same period last year and 6% above the five-year average.

The £3 billion milestone has only been reached once before, in 2023. JLL attributed this performance to three major portfolio transactions in the second quarter: L&Q’s 3,200-home Metra Living portfolio, Lendlease’s Elephant Park development in London, and Blackstone’s sale of around 1,000 single-family homes from its Leaf Living business. Together, these deals accounted for £2 billion of the total investment.

The figures represent a recovery from a subdued first quarter, when investment stood at £736 million. Multifamily investment was significantly boosted by the Metra Living and Elephant Park deals, with this sector making up two-thirds of all BTR transactions in the first half of the year. Investment in single-family rental homes reached £1 billion, which is 7% higher than a year earlier and 3% above the five-year average.

Despite the strong overall investment, JLL reported that funding for new multifamily development had dropped to its lowest level since at least 2015. Investment through forward funding, forward purchases, and land acquisitions made up just 10% of multifamily investment in the first half of 2026, compared to around two-thirds between 2023 and 2025. JLL noted that this reflects ongoing challenges for developers in bringing new schemes to market, even as more completed portfolios become available.

For UK letting agents and inventory clerks, these trends highlight continued demand for rental properties and the importance of large-scale portfolio transactions in shaping the market. However, the slowdown in new multifamily development may impact future supply.