UK BTR investment hits record €2.6b in Q2 2026

According to the latest data from international real estate advisor Savills, the UK BTR sector recorded £2.2 bn (€2.6 bn) in investment during Q2 2026, marking the strongest second quarter on record for the industry. 

Savills

This surge in capital deployment means that at the mid-year point, total investment for 2026 has already outpaced the nine-month totals achieved in 2023, 2024, and 2025.

Investor appetite for operational, income-generating residential assets reached new heights, driven by two of the three largest BTR transactions ever recorded in London:

Morgan Stanley, in partnership with Ridgeback, acquired the Private Rented Sector (PRS) division of London & Quadrant Housing Trust for more than £1.04 bn (€1.23 bn). Spanning nearly 3,200 homes, it stands as the largest single acquisition of operational BTR stock to date.

Greystar acquired 904 residential units at Elephant Park for approximately £500 mln (€590 mln].

The first half of 2026 has triggered a dramatic shift in where investment capital is originating.

Sustained interest from North American investors accelerated rapidly, accounting for 60% (nearly two-thirds) of all total investment in H1 2026. This capital is being deployed evenly across both suburban single-family rental housing and high-density urban apartment developments.

Conversely, UK domestic investors comprised 35% of market activity in H1 2026. This marks a notable reversal from the five-year trend ending in 2025, during which domestic capital historically led the market with an average annual share of 54%.

Davina Clowes, head of London Residential Investment, Savills Operational Capital Markets, commented: “London continues to demonstrate its strength as one of the most attractive residential investment markets globally. The scale of capital deployed in the first half of the year demonstrates the sustained demand for high-quality assets in well-connected locations, despite a challenging macroeconomic backdrop. These transactions show the depth of investor conviction in the capital’s long-term fundamentals and the resilience of the UK BTR sector.”

Guy Whittaker, head of UK BTR Research at Savills, added: “North American capital has been an important source of investment into UK Build to Rent for some time, but their activity in the first half of 2026 marked a significant acceleration of the trend. Investors are increasingly looking across the full spectrum of UK rental living, and with two quarters of the year still remaining, the sector is well positioned for another strong year. The fundamentals of the sector are strong, with robust rental demand and an ongoing need to increase housing delivery across the UK.”