A surge of single family rental investment in 2023 saw the UK rise to the second largest global market, with significant scope for growth.
Insight
Single Family Rental
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Build-to-rent investors in the UK have traditionally focussed on purpose-built flats in city centres, but now institutions are turning to the suburbs, seeking to unlock a far larger market of rental houses.
The UK has attracted £2.8bn in SFR investment, making it the largest market in Europe, with the largest platforms planning to build portfolios of more than £12bn between them. The sector has grown to 9,400 operational homes in the UK, with a further 11,900 in the pipeline. Current investor ambitions would see this rise to 50,000 by 2025.
If the UK grew to the same institutional market share as the US, it could see 95,000 homes. Based on the forecast rate of delivery, this should take five years. Still this would be significantly short of the total potential in the UK.