The UK’s build-to-rent (BTR) market is red-hot, with investments reaching a record high in the second quarter of 2024.

More Than Just Flats:

It’s not just about apartments anymore! Single-family homes are becoming a major force in the BTR sector, attracting a wider range of investors and tenants. In fact, single-family homes accounted for a whopping 56% of all BTR investment in Q2, thanks in part to a massive £580 million deal where Vistry sold 1,750 homes to Leaf Living, a company backed by the investment giant Blackstone.

The Numbers Don’t Lie:

• £1.3 billion: That’s how much money was poured into BTR in Q2, a massive 38% jump from the same period last year.
• £2.6 billion: The total investment for the first half of 2024, beating the previous record set in 2021.
• 23,000: By 2026, the number of completed single-family BTR homes will more than double.

Building for the Future:

The vast majority of Q2 investments (94%) were used to build nearly 4,000 new homes, proving that developers are confident in the long-term growth of the BTR sector.

Experts Weigh In:

Lizzie Breckner, the head of BTR research at Knight Frank, says: “The BTR sector is rapidly changing, and single-family housing is a key driver of this change. This diversification is attracting a wider range of investors and meeting the needs of more people.”

David Shapland, a partner in Knight Frank’s residential investment team, adds: “Despite tough economic times, investors are pouring money into BTR, showing their belief in the future of purpose-built rental accommodation.”

The Big Picture:

• 114,207: The number of completed BTR homes in the UK.
• 62,030: The number of BTR homes currently under construction.
• 84,607: The number of BTR homes with full planning permission.

This means the total size of the BTR sector is 260,844 homes. And with more than 11,000 new BTR homes completed this year already, the sector could be on track for its biggest year ever!