UK: Build-to-rent (BTR) investment fell by 22 per cent year-on-year in the first half of 2025 to £2.2 billion, according to new research from JLL, as the market experienced a sharp slowdown in multifamily deals during Q2.
The figure is also down 11 per cent on the five-year January–June average (£2.48 billion).
Multifamily dominated BTR investment in Q1, reaching close to £1.4 billion, with activity slowing in Q2 due to viability and planning challenges.
Notable transactions included KKR’s acquisition of the 424-unit Slate Yard scheme in Salford from Legal & General for approximately £100 million.
In contrast, single-family BTR gained momentum in Q2, accounting for 60 per cent of investment in the sector during the quarter, with £575m invested.
Across H1, single-family BTR represented around a third of total investment (£816.7 million).
Key transactions included Greykite’s £80 million acquisition of two portfolios from Keepmoat and Barratt Redrow through its Uniqhomes brand, and Lloyds Living’s acquisition of 598 homes in partnership with Barratt Redrow.
Despite the Q2 slowdown, JLL expects activity to pick up in H2, with multiple deals progressing, including Blackstone’s £225 million single-family portfolio acquisition from Placefirst completed in July.
Marcus Dixon, head of UK living and residential research at JLL, said: “The pendulum, which had swung firmly towards multifamily investment in Q1, shifted to single family in Q2. While some investment has been redirected, it’s worth noting the quieter quarter for multifamily followed two particularly active quarters. We anticipate a potential uptick in activity in the second half of the year.”
Highlights:
– BTR investment fell 22 per cent year-on-year to £2.2 billion in the first half of 2025, down 11 per cent on the five-year H1 average.
– Multifamily dominated Q1 (£1.4 billion) but slowed sharply in Q2 due to viability and planning challenges.
– Single-family BTR took the lead in Q2, accounting for 60 per cent of quarterly investment (£575 million).
– Blackstone’s £225 million Placefirst acquisition in July signals Q3 momentum, with more deals in the pipeline.
