The UK's build-to-rent (BTR) sector attracted £800m of investment in the third quarter of 2024, a significant increase compared to the same period last year, Savills revealed.
Savills' latest UK BTR data shows single-family homes (SFH) accounting for 50.4% of total investment, a record high. 
The surge in investment is being driven by bulk and single-site deals as investors seek scale to establish critical operational infrastructure.
Bulk deal investment will reach £1.2bn in the year to Q3 2024, representing half of the £2.4bn invested in the SFH sector.
Single-site schemes also saw a significant increase, rising from £270m to £1.2bn.
Mr Savills said financial institutions were seizing the opportunity to enter the market as sales rates for homeowners and BTL investors slowed.
Housebuilders are restructuring their business models and forming Private Rental Sector (PRS) partnerships, demonstrating a long-term commitment to SFH.
Mr Savills said it recognized that the changes meant sales rates might not return to previous levels.
Guy Whittaker, head of UK BTR research at Savills, said: “The rapid growth in single site trading alongside bulk trading suggests that the recent increase in investment is simply a response to a weak sales market. “This shows that this is not just a reaction, but a long-term trend.”
“In the current climate, viability remains a hurdle, as debt and construction costs are rising, and so is the planning system, particularly in London. Investor demand will continue, and more and more investors will reallocate funds from other commercial real estate sectors to residential.”
