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

UK Build-to-Rent Investment Reaches £3bn in Early 2026

Investment in the UK build-to-rent (BTR) sector reached £3 billion during the first half of 2026, according to figures from JLL. This marks the second-strongest start to a year on record and represents a 28% increase compared to the same period in 2025.

The £3 billion total is only the second time investment has reached this level in a six-month period, following a similar milestone in 2023. The figure also stands 6% above the five-year average for the sector.

Three major portfolio transactions in the second quarter accounted for £2 billion of the total investment. These included L&Q’s 3,200-home Metra Living portfolio, Lendlease’s Elephant Park development in London, and Blackstone’s sale of approximately 1,000 single-family homes from its Leaf Living business. The sector saw a recovery from a subdued first quarter, when just £736 million was invested.

Multifamily investment made up two-thirds of all BTR transactions in the first half of 2026, driven by the Metra Living and Elephant Park deals. Investment in single-family rental homes reached £1 billion, which is 7% higher than the previous year and 3% above the five-year average.

Despite the strong investment figures, JLL reported that funding for new multifamily development fell to its lowest level since at least 2015. Investment through forward funding, forward purchases, and land acquisitions accounted for just 10% of multifamily investment during the first half of the year, compared with around two-thirds between 2023 and 2025.

The figures highlight strong institutional demand for existing BTR assets, but also ongoing challenges for developers in bringing forward new schemes. The sector’s performance comes amid concerns about housing affordability for potential buyers and continued economic uncertainty.