According to new data from Savills, investment in single-family housing totalled approximately £2.5bn in 2024.

Last year also marked a 20% increase on the £2bn recorded in 2023, which Savills said was the result of new sources of capital being attracted to the market.

The report added that approximately 8,000 single-family homes were developed between 2019 and 2024, which it said highlighted the need to “significantly increase the rate of current delivery”.

There are now 14,000 completed single-family homes, with a further 13,000 under construction.

Data from CBRE earlier this week revealed £735.3m of investment in the UK’s build-to-rent (BTR) sector in Q1 this year, down 50% on Q4 2024.

Savills cited Greykite’s acquisition of 11 sites in the Midlands, North East and Yorkshire from Persimmon Homes in a joint venture, with Gatehouse Investment Management acting as asset manager, late last year.

The partnership is set to target a range of housebuilders as it seeks to build a portfolio of 2,500 new homes, with £750m of investment.

Savills added that CPP Investments committed £500m in a joint venture with Kennedy Wilson, while the National Pension Service of Korea committed £300m to seed a fund managed by Long Harbour, targeting a fund size of £1.6bn.

Piers de Winton, head of single-family investment at Savills, said the new research showed the “critical role of the single-family housing sector in addressing the UK’s rental home shortfall”.

He added: “With substantial investment from both domestic and international investors, improved viability and strong rental growth, there is a significant opportunity for single-family housing to meet the growing demand for rental homes and contribute meaningfully to the government’s ambitious housing targets.”