The research also shows a record number of homes under construction, at 59,043, despite a slowdown in starts due to economic headwinds. According to Savills, BtR now accounts for 10% of all UK real estate investment, demonstrating the resilience of the asset class and its continued appeal to a global investor pool.

Research from Savills shows that there are 92,140 completed BtR homes across the UK, an 11% rise year-on-year. BtR is also expanding its reach, with the number of local authorities that have BtR in their planning pipeline reaching 200 for the first time. In addition, there are 112,511 homes in the planning pipeline, including those in the pre-application stage. The total size of the sector is therefore 263,694 homes.

Polly Simpson, head of multifamily development, Savills OCM, says:““The proportion of UK Real Estate investment going into BtR has been record breaking in 2023 as investors continue to diversify their real estate holdings towards the Living sectors. Q3 saw the single largest transaction of the year, between Long Harbour and St George, and the beginning of Q4 has already seen multiple transactions close. With 10% of all UK real estate investment now going to BtR, and with its proven inflation-hedging credentials, this is a major asset class and we expect continued growth in its share of investment allocations moving forwards.”

Savills research found that while in Northern Ireland the first BtR scheme began construction in Q3, starts in London remained subdued, due to the continued impact of the heightened cost of debt and changes in regulations around second stair cores. Starts in the regions were more resilient (3,339), slightly down on the very strong Q2, but far above Q1 (1,543). This was bolstered especially by the growing number of Single-Family Housing (SFH) schemes, with 20 having started construction in 2023 so far.