Investment in the UK build-to-rent (BTR) sector totalled £2.2bn in Q2 2026, marking the strongest second quarter on record, according to research from Savills.

The volume of capital deployed means that half way through the year, 2026 investment has already topped the total recorded at the end of Q3 in 2023, 2024 and 2025, according to the firm.

Savills accredited the jump to growing investor interest in the UK rental sectors, highlighting Morgan Stanley and Ridgeback’s purchase of the private rented sector arm of London & Quadrant Housing Trust for more than £1.05bn.

Savills said the sale of the portfolio, which comprises nearly 3,200 homes, was the largest acquisition of operational BTR stock to date.

The firm also highlighted Greystar’s recent acquisition of 904 homes at Elephant Park for around £500m.

Domestic investors accounted for 35% of investment in H1 2026, while North American capital accounted for around 60%, Savills calculated.

Davina Clowes, head of London residential investment in Savills’ operational capital markets team, said: “London continues to demonstrate its strength as one of the most attractive residential investment markets globally.

“The scale of capital deployed in the first half of the year demonstrates the sustained demand for high-quality assets in well-connected locations, despite a challenging macroeconomic backdrop. These transactions show the depth of investor conviction in the capital’s long-term fundamentals and the resilience of the UK BTR sector.”

Guy Whittaker, head of UK BTR research at Savills, added: “North American capital has been an important source of investment into UK BTR for some time, but their activity in the first half of 2026 marked a significant acceleration of the trend.

“Investors are increasingly looking across the full spectrum of UK rental living, and with two quarters of the year still remaining, the sector is well positioned for another strong year. The fundamentals of the sector are strong, with robust rental demand and a need to increase housing delivery across the UK