CBRE: Build-to-Rent drives surge in UK living sector investment

Investment into the UK's living sector rose sharply during the first half of 2026, driven by renewed institutional demand for Build-to-Rent (BTR) assets despite continued economic uncertainty.

According to preliminary figures from CBRE, total investment across the sector reached £4.4 billion during the first six months of the year, representing a 48% increase on the same period in 2025.

The strongest performance came from the Multifamily Build-to-Rent market, where investment accelerated significantly during the second quarter.

BTR transactions totalled £1.8 billion between April and June, more than doubling the £821 million recorded during the same period last year, highlighting growing investor confidence in professionally managed rental housing.

The quarter was dominated by two major London portfolio transactions: the £1 billion acquisition of L&Q's Private Rented Sector portfolio by Morgan Stanley Real Estate Investing (MSREI) and Ridgeback Group, alongside Greystar's £500 million purchase of the 904-home Elephant Park portfolio.

CBRE said both transactions demonstrated continued demand for stabilised, income-producing residential assets in locations where supply remains constrained and rental demand remains strong.

The momentum is expected to continue, with more than £1.3 billion of Multifamily and Single-Family Build-to-Rent assets currently under offer.

Elsewhere in the Operational Living sector, Purpose-Built Student Accommodation (PBSA) recorded a quieter second quarter, with £80 million invested. However, investment across the first half of the year reached £1.9 billion, representing a 66% increase compared with the first six months of 2025 following a particularly strong opening quarter.

Andrew Saunderson, Head of UK Living Capital Markets at CBRE, said that while geopolitical uncertainty continues to influence market conditions, the Multifamily sector remains attractive to investors because of its resilient fundamentals and consistently strong occupier demand.

The latest figures reinforce the growing importance of Operational Living as one of the UK's most resilient real estate sectors. While investment across some traditional property classes has remained subdued, professionally managed rental housing continues to attract long-term institutional capital seeking stable income and defensive growth. The strength of the current investment pipeline also suggests confidence in the sector extends well beyond the headline transactions completed during the first half of the year.