Construction News

29 May 2025

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Build-to-rent investment hits new high

1 day Investment into the UK build-to-rent sector has increased by 50% in the past year alone.

The Hill Group, Peabody and Goodstone Living are coming together to develop 360 BTR apartments at Dagenham Green in London
The Hill Group, Peabody and Goodstone Living are coming together to develop 360 BTR apartments at Dagenham Green in London

Analysis by software provider Property Inspect has found that in the first quarter of 2025 alone, £832m was pumped into the UK build-to-rent (BTR) sector, compared to £55m in Q1 2024.

This suggests that BTR is going to enjoy a bumper year in the UK this year, following on from a strong 2024 that saw BTR investment increase by almost 12% to top £5bn.

Over the past five years, UK BTR has seen an average annual investment increase of 14.3%.

Further analysis of completion data shows that this increased investment has resulted in a big increase in the number of BTR homes being delivered to the UK market.

In Q1 2025, construction on an estimated total of 127,156 BTR homes was completed, up 15.8% on Q1 2024’s total of 109,847 completions. It is the largest quarterly completions number on record for a sector that has been steadily growing year after year.

Siân Hemming-Metcalfe, operations director at Property Inspect, said: “The BTR sector is rapidly emerging as a focal point of UK property investment. It is in high demand from tenants and receiving strong support from lenders who see it as a secure investment,  and planning committees who see it as a reliable way of increasing the number of good quality rental homes for their communities.”

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MPU
MPU

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