Momentum continues in second half of 2026
UK Build to Rent Investment
More than £900 million was invested in Q3 2026, taking year-to-date volumes to c.£4.2 billion – more than any previous year at this point. Q4 has accounted for the largest share of annual investment in each of the past three years, so 2026 could deliver a new annual record by year-end.
We continue to see strong appetite for operational assets. Border to Coast acquired a c.£400 million portfolio of 866 stabilised single-family homes (SFH) across the South East, marking the largest SFH transaction of the year.
Development funding has accounted for 36% of year-to-date investment, focused on SFH schemes. In Q3, c.£300 million was committed across five English regions, highlighting the expanding geographic reach of SFH. Royal London agreed to forward-fund 173 apartments in Newton Heath, Manchester, but city-centre development funding remains challenging.
Bumper summer of rental growth
The Renters’ Rights Act came into force in May and has coincided with a rise in rents across England, where the largest cities recorded stronger rental growth in the three months to August 2026 than their historical averages. The exception was Birmingham, where high levels of rental supply have constrained rent increases. This pattern extended across much of the country, as 72% of English local authorities recorded stronger-than-average rental growth this summer.
We expect this acceleration to be a one-off adjustment in rents, rather than a substantial shift in underlying supply and demand. Landlords can no longer accept offers above the asking rent, so some have taken the opportunity to rebase rents and ensure they are capturing full market value.
For more, look out for our 2027–2031 mainstream rental forecasts, launching next month.
For more information, get in contact with our Operational Capital Markets (OCM) team here.
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