Multifamily homes drive £1.4bn in build-to-rent investment

Multifamily BTR investment exceeded £1bn for the second consecutive quarter, JLL said, and it reached almost £3.2bn in the 12 months to March 2025.

Single-family homes – houses or low-rise flats – represented £240m of investment in Q1 2025, more than £400m below the Q1 2024 figure.

JLL noted that almost £1bn had been invested in single-family homes in the past six months, despite the slow start to 2025.  

Despite the increase in forward-funding deals in Q1, JLL said that “continued planning and building safety challenges alongside uncertainty over debt and build costs all still weigh heavily on the market, meaning we expect investment in built stock will continue to dominate in 2025”.

Marcus Dixon, head of UK living and residential research at JLL, said the billions invested in multifamily housing showed “the sustained level of interest in the sector”.

Mr Dixon added: “Single family had a quieter first quarter, but there are multiple deals we are aware of in the pipeline, meaning we expect a busier Q2.

“The world is clearly a different place from where it was at the start of Q1, but we expect the knock-on effect of tariffs and global uncertainty could reduce debt costs and divert investment into tangible assets, including UK living, this year.”

The growing BTR sector is currently estimated to be around 2%-3% of privately rented properties in the UK, but it is experiencing significant investment.

Last month, L&G struck a deal with Japan’s Nomura Real Estate Development to create around 1,000 BTR homes over the next five years.