Savills: UK Build to Rent investment volumes reach record £5.3bn in 2025
International real estate advisor Savills reports that UK Build to Rent (BTR) investment volumes reached a record £5.3bn in 2025, an annual increase of 6%. The final quarter of 2025 alone saw almost £2.7bn invested in UK BTR, the highest quarterly total on record. To put this in context, Q4 2025 exceeded the full year investment volumes of 2016, 2018 and 2019 and contributed more than half (51%) of the total investment in 2025.
Savills anticipates that investment volumes in 2026 will be driven by the government’s focus on housing, alongside continued rental demand that significantly exceeds supply. The advisor states that strengthening investor confidence and accelerating decision‑making will be essential in the year ahead, with a clear priority now to convert existing planning permissions into delivery.
The firm notes that £3.17bn was deployed into Single Family Housing (SFH), the highest annual volume on record and a 28% increase from 2024. This meant it accounted for 59% of all UK BTR investment in 2025, cementing the upward trend seen in previous years (47% in 2023 and 50% in 2024).
Piers de Winton, head of Single Family Housing, Savills, states: “Single Family Housing showed particular strength in 2025. The acquisition of the PRS REIT by Northern LGPS and Local Pensions Partnership, advised by Savills, marked the largest BTR transaction to date and has redefined the scale of activity in the sector.”
Savills states that as of Q4 2025, the UK’s BTR stock stood at over 146,700 completed homes, a 13% increase nationally on the previous year. A further 50,600 homes are currently under construction, with 101,500 homes in the planning pipeline (including pre‑application proposals). In total, the sector now encompasses some 298,800 homes, up 4% year‑on‑year.
However, new starts on site remain subdued. The research shows that there have now been more completions than starts for eight consecutive quarters. In London, BTR starts fell by 93% between 2022 and 2025, with 23 out of 32 boroughs recording no new starts in 2025.
Guy Whittaker, head of Build to Rent Research at Savills, adds: “While the headline investment volumes are clearly positive, there is still work to be done to channel funding effectively and unlock development. The fall in starts, particularly in London, is striking, though we are seeing signs of resilience in the regions due to greater viability, improved affordability and a growing pipeline of consented schemes. The priority must now be to convert planning permissions into delivery. To meet the government’s ambitious housing targets, further intervention on the development side will be essential.”