JLL research shows UK Build to Rent investment reaches £2.2bn in H1 2025, with single family housing dominating Q2 at 60% while London construction starts hit historic lows.
News release
21 July 2025
Strong Q2 for Single Family BTR Investment
- Investment in Build to Rent totals £2.2bn in H1 2025
- Single family more dominant in Q2, accounting for 60% of BTR investment
- Multifamily activity slows following strong Q1 performance
- London BTR construction starts hit historic low amid regulatory challenges
Single Family BTR Gains Momentum
Single family housing accounted for 60% of build-to-rent investment in Q2 2025, with over £800m invested in the segment year-to-date, including more than £575m in Q2 alone. Notable transactions included Greykite's £80m acquisition of two portfolios from Keepmoat and Barratt Redrow through its Uniqhomes brand, and Lloyds Living's acquisition of 598 homes in partnership with Barratt Redrow.
The momentum appears set to continue into Q3, with several significant deals completed and, in the pipeline, these include Blackstone's £225m single family portfolio acquisition from Placefirst which in early July.
Multifamily Investment Pauses After Strong Start
In contrast, multifamily investment slowed in Q2 following robust activity in Q1 and Q4 2024. While H1 2025 investment still reached close to £1.4bn, almost three quarters of that activity occurred during Q1. Notable transactions in 2025 include KKR's acquisition of the 424-unit Slate Yard scheme in Salford from Legal & General for approximately £100m. Despite the Q2 slowdown, multiple deals currently in negotiation suggest increased activity may resume in H2.
A slower Q2 for multifamily means overall BTR investment in the first half of 2025 fell 11% on the five-year January to June average and were 22% lower than a busy H1 last year.
Higher Risk Buildings Regulation Impacting Development Pipeline
Despite strong investor appetite for living assets, new multifamily scheme starts have declined significantly. Viability concerns coupled with increased time and cost pressures in navigating the Gateway process for buildings over 18 metres have substantially reduced development activity over the past 18 months.
Recent data from Molior London reveals fewer than 100 BTR units have broken ground in the capital year-to-date, with just over 1,800 BTR starts in the last 12 months—65% below the five-year average. This reduction in new starts has led to a 23% decrease in units under construction over the past year. Currently, approximately 10,600 units are under construction, down from an average of 16,600 units between 2018 and the end of 2023.
Marcus Dixon, Head of UK Living and Residential Research at JLL, commented:
"Investment in the UK build-to-rent sector hit £2.2bn in the first half of 2025. The pendulum, which had swung firmly towards multifamily investment in Q1, shifted to single family in the second quarter.
Viability challenges and difficulties in progressing schemes through the Gateway process are clearly impacting activity in the multifamily sector. While some investment has been redirected to single family, it's worth noting that the quieter Q2 for multifamily followed two particularly active quarters. With numerous deals in the pipeline, we anticipate a potential uptick in activity as we move into the second half of the year."
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