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Uptick in build-to-rent deals as investors buy up existing flats
Build-to-rent (BTR) deals are rising as investors buy up existing flats, data has shown.
Build-to-rent (BTR) deals are rising as investors buy up existing flats, data has shown #UKhousingIn the nine months to September this year, a record 43% of all urban BTR transactions targeted existing stock, according to property agency JLL. That is a sharp rise from a five-year average of 23%.
This year to date, investors have committed £722m to existing urban flats – £10m shy of the amount transacted in the first nine months of 2022 during the BTR sector’s peak.
Investors have sought opportunities in existing assets rather than forward-funding new developments. This has been driven by challenges to viability and delays caused by building safety regulations, coupled with a growing amount of existing stock being marketed, JLL said.
The average single-scheme deal in 2025 stood at £85m, 50% above the five-year average.
The largest single-scheme deal on record in UK urban BTR flats took place in the third quarter of 2025: Greystar’s acquisition of Barking Wharf from Invesco Real Estate for £172m.
Despite the difficulties surrounding development, investment in new urban flats rose 20% against the same nine-month period in 2024 – totalling £960m across almost 4,000 new homes.
In total, £1.7bn has been invested in urban flats since the start of the year, down by a quarter compared to the five-year average.
Major deals included the joint venture between Housing Growth Partnership and JRL Group to deliver a 414-home scheme in Luton, as well as Legal & General, PGGM and Nest’s partnership to forward-fund 494 homes in Deansgate Square, Manchester.
Investment in the wider BTR landscape, which also includes suburban homes and co-living, decreased by 6% compared to the nine-month period last year. But Q3 saw an uptick, with deals worth £977m – 66% higher than in Q3 of 2024.
Meanwhile, investment in suburban houses, known as single-family, stood at £1.5bn this year – down 11.8% from £1.7bn this time last year, but 15% above 2023 when it first took off in a significant way.
Suburban houses made up 45% of total BTR investments, with 32 deals, down from 38 deals in 2024. The average price stood at £44m.
Three transactions valued at more than £100m took place, including Placefirst’s £225m purchase of 520 homes from Blackstone and Regis’ Leaf Living portfolio – the largest operational suburban homes deal to date.
Karl Tomusk, associate at UK living research at JLL, said: “It’s impossible to ignore the persistent headwinds in the market, and that was evident in the first half of the year.
“So, it’s encouraging to see an uptick in Q3, particularly on the multi-family front.
“Deals on the operational side of the market are underpinning activity, but even forward funding has picked up since 2024.
“Within that context, single-family hasn’t grabbed the headlines as it did in 2023 and 2024, but it’s become a reliably active part of UK BTR.
“And having only really made a splash in the last few years, there is still plenty of room for growth.”
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