Operational assets drive UK build-to-rent investment to strong Q1
Savills reports £795m transacted in Q1 2026, with majority of capital targeting stabilised schemes.
8 April 2026
Investment in the UK Build-to-Rent (BTR) sector reached £795 million in the first quarter of 2026, marking the strongest start to the year since 2022, according to new research from Savills.
The data shows that activity has been led by acquisitions of operational assets, which accounted for 68% of total investment volumes during the period. London continued to dominate, representing the majority of these transactions.
The trend reflects a continued preference among investors for income-producing assets, as market conditions remain more challenging for forward funding and development-led deals.
One of the largest transactions outside central London saw Pension Insurance Corporation acquire the Ebb & Flow scheme in Reading, highlighting ongoing demand for stabilised assets in regional markets.
While investment activity has remained robust, development activity is showing signs of constraint. Across the UK’s core cities, the number of BTR units under construction fell by 11% year-on-year, with completions outpacing new starts.
Savills attributes this slowdown to a combination of factors, including planning delays, building safety requirements and construction cost inflation, all of which are impacting the viability and timing of new schemes.
Despite these headwinds, the overall pipeline continues to grow modestly, with approximately 108,000 units now in development or planning stages across the UK’s 12 core cities, up 3% compared with the previous year.
The data suggests a market that remains attractive to capital but is becoming more selective, with investors prioritising lower-risk, operational stock while new development faces increasing delivery challenges.
Savills expects transaction volumes to remain strong through 2026, particularly as further deals currently in legal stages are completed in the coming months.
