INTRODUCTION
INTRODUCTION
Executive summary
The UK Build-to-Rent (BTR) sector has emerged as a dynamic and rapidly growing segment of the housing market that directly addresses the increasing demand for high-quality rental accommodation. Over recent years, the sector has seen unprecedented growth with investment levels reaching record highs. According to research from Savills, the first quarter of 2025 saw over £800m invested in UK BTR with stock now standing at over 127,000 completed homes in the UK.
In this report, we use BTR as an umbrella term for all residential accommodation built purposefully as a rental product, including both new build flats and houses. Our report shines a light on the views and opinions of those who are shaping the future of the sector – BTR developers, investors and funders. The findings paint a picture of a thriving market, but also one which is not without its fair share of challenges. Overall, there is a clear message that the BTR opportunity is very significant for UK housing provision.
It’s also clear that BTR has a vital part to play in tackling major societal issues, from urban regeneration to boosting housing supply. Indeed, nearly two-thirds (65%) of those we surveyed said BTR plays a major role in addressing the UK’s housing crisis, while almost three quarters (74%) said that many housing projects in underserved areas would not be possible without private investment.
We also looked at the sector’s wider relationship with societal drivers and, more specifically, the sector’s focus on building sustainable communities and eco-friendly developments, all of which make BTR a crucial component of the UK's housing strategy.
Our report shows how the general positivity surrounding BTR is mirrored by growing investor appetite based on strong market fundamentals and a clear belief in the sector’s long-term resilience when compared to other real estate classes. These compelling factors also make UK BTR an attractive opportunity for foreign capital.
Nearly two thirds (65%) of respondents said the BTR model plays a major/significant role in addressing the UK’s broader housing crisis.
Almost three quarters (74%) of respondents, excluding funders, agree that without private investment, many housing projects in underserved areas would not be possible, with over three in 10 (32%) who strongly agree and over two in five (42%) who somewhat agree.
Meanwhile, developers and investors must navigate numerous obstacles, which have the potential to constrain growth. These range from an over-reliance on experienced operators (and potential inaccessibility to the market to sufficient numbers of smaller developers) to more complex and continuing frustrations with regulations and the planning environment. However, from an investment perspective, where there are challenges from traditional funders, we are seeing the role that public sector financing can play in bringing schemes to market first-hand.
As a transatlantic law firm, we were fascinated to compare the UK with the more mature US BTR market to see what could be learned. Although the scale is significantly different, there are clear parallels and some telling watch-outs for where the UK market could be heading. In addition, we can see US funds make up a notable portion of the foreign capital looking to be deployed in UK BTR.
The full report, which follows, explores the findings in detail with opinions from our real estate experts in the UK and US. Covering sustainability, investment and regulatory trends as well as learnings from the US, this analysis provides the building blocks for unlocking the potential of UK Build-to-Rent.
Key findings
The results of our survey of 700 UK BTR developers and funders show that:
believe BTR plays a major role in addressing the UK’s housing crisis.
of developers believe sustainability is critical in shaping their funding strategies.
of all respondents believe BTR adds value to society.
of funders reported a very strong appetite for investing in the sector.
of funders view BTR as having more long-term resilience than other classes of real estate.
of developers perceive current and recent building regulations to have a depressive impact on the delivery of BTR.
Our survey unlocked three key themes, find out more…
