UK: BTR investment totalled £1.4 billion in Q1 of 2025, with multifamily homes accounting for over £1 billion of the activity, according to new data from JLL.
Multifamily developments made up £1.07 billion of the total quarterly investment, maintaining momentum for the second consecutive quarter and taking 12-month investment to nearly £3.2 billion.
The quarter’s largest transaction was a £160 million forward-funding deal between Legal & General, Dutch pension fund PGGM, and UK pension scheme Nest for a 494-unit development in Manchester.
Also in Q1, Barings agreed a £152 million forward funding deal with Glenbrook to deliver 618 homes across five blocks in Leeds, reflecting a continued institutional appetite for large-scale urban BTR schemes.
In contrast, investment in SFR homes – including houses and low-rise flats – slowed to £240 million in Q1, more than £400 million down from the same period last year.
However, JLL highlighted nearly £1 billion of SFR investment in the six months to March, with activity expected to rebound in Q2.
Marcus Dixon, head of UK living and residential research at JLL said: “The billions invested in multifamily housing this quarter reflect a sustained level of investor confidence in the sector. While SFR had a quieter start to the year, we’re aware of multiple deals in the pipeline and expect a stronger Q2.”
The UK’s BTR market currently represents just 2–3 per cent of the private rented sector but continues to scale rapidly. Last month, L&G signed a joint venture with Nomura Real Estate Development to deliver 1,000 new BTR homes over the next five years.
