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UK: The UK living sector attracted £2.5 billion in investment in Q1 2026, an increase of 74 per cent over Q1 2025.
This follows a Q4 2025 total investment of £2.95 billion. The data, released by real estate investment advisor CBRE, show increased investor commitment even as geopolitical shocks threaten to reduce capital flow.
The bulk of capital comes from purpose-built student accommodation (PBSA) deals. £1.7 billion, or 68 per cent of total investment was in the PBSA sector. Individual asset transactions accounted for £571 million, up 12 per cent from last quarter and 40 per cent from last year’s period. The largest transaction was Unite Students’ acquisition of Empiric Student Property, which added 68 buildings and 7,700 beds to the UK’s largest PBSA portfolio.
In contrast to PBSA performance, build-to-rent volume (BTR) fell to £800 million Q1 2026. This is despite the most substantial single-asset BTR purchase in the last two years. In Reading, Pension Insurance Corporation bought the stabilised multifamily BTR Ebb and Flow for over £200 million.
“Investor appetite for the UK living sector remains strong,” CBRE living sector leader Andrew Saunderson said. “This reflects how sustained demand from renters for professionally managed, high-quality accommodation is underpinning investment returns across all living subsectors. It is therefore not surprising that the living sector ranks first for most preferred target in our annual investor intentions survey.”
Highlights:
- UK living sector investment reached £2.5 billion in Q1 2026, up 74 per cent year-over-year, following £2.95 billion in Q4 2025.
- Purpose-built student accommodation dominated with £1.7 billion (68 per cent), including Unite Students’ acquisition of Empiric Student Property adding 68 buildings and 7,700 beds.
- Build-to-rent volume fell to £800 million, though Pension Insurance Corporation bought Reading’s Ebb and Flow for over £200 million, the largest single-asset BTR purchase in two years.
- CBRE’s Andrew Saunderson noted sustained renter demand for professionally managed accommodation is underpinning returns across all living subsectors.
