UK housebuilders pivot to single-family housing

UK housebuilders are increasingly focusing on single-family housing (SFH), attracting a record £3.17 bn (€3.63 bn) in investment in 2025.

Single family housing - Savills

This shift is driven by a larger pool of capital, greater investor confidence, and the benefits SFH offers to housebuilders, such as faster sales, better returns, and diversified sales channels beyond traditional private buyers.

A recent Savills survey of 10 housebuilders revealed a significant strategic change: while few planned substantial SFH sales five years ago, 50% now expect to sell over 15% of new homes to SFH investors between 2026 and 2030. This is because SFH allows for quicker capital recycling, especially on large sites, helping fund later development phases and infrastructure. This is crucial as more planning approvals are for larger schemes.

SFH sales are now considered a long-term strategy, with 80% of housebuilders integrating SFH investor needs into their land acquisition and site planning from the start. They are designing homes, particularly two and three-bedroom units, to meet strong rental demand.

Investor interest in SFH remains high due to consistent occupancy, strong rental performance in suburbs, and the appeal of new properties. This has led to multiple investors successfully operating on the same large developments. While careful planning is needed for co-location, it boosts investor confidence and streamlines delivery for housebuilders.

Guy Whittaker, associate director and head of Build to Rent Research at Savills, said: “Our survey shows a fundamental shift in housebuilder strategy, with Single Family Housing now firmly embedded in delivery plans rather than used simply to counter short-term market pressures. With SFH accounting for 59% of total Build to Rent investment in 2025, and 80% of housebuilders planning to increase their SFH delivery, the sector shows no sign of slowing.”

Piers de Winton, head of Single Family Housing at Savills, added: “Single Family Housing is increasingly becoming a key part of the UK’s rental landscape. Demand for professionally managed family homes continues to strengthen, particularly in suburban markets, and investor appetite is deepening. Housebuilders are responding by integrating rental homes earlier in the development process, reflecting the sector’s growing role in large‑scale delivery. While regulation is evolving, the sector is well placed to adapt and continue providing stable, long-term housing in the locations where rental demand is rising most.”