Momentum in the UK’s build-to-rent (BTR) sector has continued to grow, with over £3bn invested in the first nine months of 2025, according to data from Knight Frank.

Investment in Q3 alone reached around £850m, up 35% from the same period last year, while 2.2bn was deployed in the sector in the first half of the year.

Stock in the sector, which includes multi-family housing, single-family housing (SFH) and co-living, now stands at 153,367 completed homes, up 25% on Q3 2024. The further 54,354 homes under construction will take overall stock to more than 200,000 when completed.

SFH has performed particularly strongly, accounting for 40% of BTR investment in Q3 and 46% of investment so far this year, amid strong appetite and liquidity for houses for rent.

From a capital markets’ perspective, there is “healthy appetite” from both debt and equity providers for BTR deals, according to Lisa Attenborough, head of Knight Frank Capital Advisory.

She added: “Lenders remain highly competitive for well-structured deals with strong underlying fundamentals, particularly for stabilised assets with proven income streams.”

Knight Frank said senior debt loan-to-value levels are topping 60%, with margins coming under 150bps for best-in-class stock. Institutional equity allocations continue to grow from both UK and international investors.

However, the firm warned that BTR activity is likely to be dampened in the rest of the year due to persistently high inflation and bond yields, plus policy uncertainty in the run-up to the November Budget.