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UK: A new report from Knight Frank says investors have deployed almost £40 billion into the UK’s build-to-rent (BTR) market over the last 10 years, £30 billion of which directly targeted the multifamily segment.
Knight Frank says the multifamily housing market is rapidly shifting from a development-led sector, into a hybrid market of development alongside trading stock, as some of the early movers in the sector look to recycle capital and sell first-generation assets to reinvest capital back into development and funding.
Nick Pleydell-Bouverie, head of residential investment at Knight Frank, said: “While significant progress has been made in UK multifamily housing, the opportunity for scale and future market growth remains enormous. Completed build-to-rent homes currently account for just 2.5 per cent of our rental households in the UK. Even a modest rise, by global standards, to 10 per cent of the marketing being institutional ownership, would require the delivery of an additional 467,000 units.”
The scale of opportunity and depth of demand for income-producing assets is reflected in Knight Frank’s latest data, which shows new entrants have accounted for around 40 per cent of operational multifamily deals since 2020. According to Knight Frank, since 2020 almost 60 per cent of all multifamily housing investment in the UK has come from overseas capital, with North American investors leading the way.
Pleydell-Bouverie added: “This data underscores the sector’s transformation into a major global institutional asset class. A decade of robust investment has pushed UK multifamily into a true trading‑market cycle, with more operational assets changing hands and new entrants increasing liquidity. Improving debt conditions are set to further accelerate deal flow.”
Lisa Attenborough, head of Knight Frank Capital Advisory, said: “Debt markets are finally moving in the right direction, and that shift will unlock stalled sites across the multifamily pipeline. As borrowing costs ease, we’re seeing a much clearer runway for institutional capital to re‑enter the market with confidence. Improving debt conditions are also sharpening acquisition appetites, particularly among global investors looking to deploy at scale into income‑producing assets.”
UK renters face ongoing scarcity, with 4.2 tenants chasing every available home last year – well above pre‑pandemic norms – and available rental supply sitting nearly 30 per cent below pre‑Covid levels. This demand pressure is not short‑term. Knight Frank forecasts an additional 550,000 people will enter the private rented sector by 2036, rising to 1.5 million by 2050, underscoring the durability of demand within the multifamily sector for investors seeking scale.
Lizzie Breckner, head of build-to-rent research at Knight Frank, added: “Despite a decade of rapid expansion, the UK remains dramatically under-institutionalised. That gap is a core driver behind the sector’s accelerating trading activity, particularly among overseas capital, as institutional investors target ready‑made platforms capable of delivering both immediate income and long‑term scaling potential.”
Highlights:
- A new report from Knight Frank, says investors have deployed almost £40 billion into the UK’s build-to-rent (BTR) market over the last 10 years, £30 billion of which directly targeted the multifamily segment
- New entrants have accounted for around 40 per cent of operational multifamily deals since 2020
- Since 2020 almost 60 per cent of all multifamily housing investment in the UK has come from overseas capital, with North American investors leading the way
