Investors have deployed almost £40bn into the UK’s build-to-rent (BTR) market over the past 10 years, according to a new report published by Knight Frank.

Around 75% (£30bn) of total investment has directly targeted multi-family housing and Knight Frank’s data shows new entrants have accounted for around 40% of operational multi-family deals since 2020, with almost 60% of all multi-family housing investment in the UK coming from overseas capital in that same time period.

Knight Frank esimtates 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 multi-family sector for investors seeking scale.

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% of our rental households in the UK. Even a modest rise, by global standards, to 10% of the marketing being institutional ownership, would require the delivery of an additional 467,000 units.”

He added: “This data underscores the sector’s transformation into a major global institutional asset class. A decade of robust investment has pushed UK multi-family 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.”

Lizzie Breckner, head of BTR 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.”