The first quarter of 2025 saw the highest level of investment Q1 in the construction of the United Kingdom to rent (BTR) since 2022, with more than 800 million invested, after a record that broke the fourth quarter 2024, according to Savills.
In the first quarter of 2025, more than £ 500 million, assigned to the development of multifamily schemes in urban locations, reversing the recent tendency of a more limited activity in the direct financing of large -scale developments. Savills’s investigation indicates that, for the fourth consecutive quarter, the investment of 12 months of international capital has exceeded it by national sources. International investors are increasingly addressed to the rented private sector (PRS) of the United Kingdom, which is based on convincing foundations that include supply shortages, affordability limitations, growing rentals and long -term demand.
Notable transactions included the front financing transaction of Hill & Peabody with Goodstone in Dagenham; The Legal & General Association with the Japanese developer Nomura to deliver more than 1,000 high quality rental homes in the United Kingdom. His joint company acquired its first central plot of London in Herne Hill, Lambeth, to develop more than 200 houses. In addition, Compassrock entered the Bristol market, buying 295 apartments in Stafford Yard, marking the first BTR transaction of the city since 2002.
According to Savills, in 2024 18,000 BTR houses were completed, representing 8% of the new construction ends in England and Wales, compared to 5% in 2019. Despite this rapid growth, BTR still represses only 2% of the United Kingdom’s PRS, demonstrating the sector. While BTR represents a greater participation of PR in some cities in the United Kingdom, it is still much lower than in international markets, in part in the United States. For example, almost 25% of PRS’s shares in Manchester is BTR, compared to 43% in Detroit and 74% in Charleston.
Savills points out that BTRS market share is expanding due to the new product compilation delivery, combined with the divestment of individual purchase to allow owners to result in a BTRS growth against a stagnant PRS. The advisor anticipates that BTR will continue to increase its market share in a wide range of locations, promoted by new market participants and a broader range of products.
Polly Simpson, director of Multifamily Development, Savills OCM, commented: “With more than 800 million invested in the first quarter this year, after a record record, and a growing demand for high quality rental housing in the middle of the vision sect, the sector of the sector to see the sector of the sector. New high quality houses throughout the United Kingdom is a trend that we hope to continue during the rest of the year in the rest. multifamily and single -family developments.
