Insight from Excellion Capital reveals that the number of Build-to-Rent (BTR) homes in the UK has increased by an estimated 173% over the past five years, with a record £5.2 billion invested into the sector in 2024.
The debt advisory and investments firm says BTR is rapidly eclipsing Build-to-Sell (BTS) as the most promising area of property for investors, with the market set to grow significantly.
Excellion’s analysis of BTR volume data suggests the number of BTR homes has increased by 173% over the last five years – an estimated 123,539 completed units. The BTR sector currently accounts for an estimated 2.2% of the UK’s total private rented stock (analysed by Excellion using UK government data).
Robert Sadler, vice president of real estate at Excellion Capital, commented:
“This is a sector that is growing at astonishing pace. London has been a useful proof of concept for both the demand for BTR homes and the returns available to investors, so now it’s spreading across the whole country, not least our secondary cities such as Manchester, Newcastle, and Birmingham.”
Excellion’s analysis reveals that London has 54,352 completed BTR homes, an annual increase of +14.5% compared to the last quarter of 2023. Elsewhere in the UK, the number of completed regional BTR homes increased by 19.1% over the same period, giving the nation an overall supply increase of +17.1%.
According to Excellion, higher standards of building and fittings, attractive amenities and perks such as gyms and cinemas, and longer tenancy periods are all contributing to the growth in the BTR sector.
Sadler added:
“So, with high market demand, strong yields, greater availability of finance, and the opportunity for a clean exit, we very much expect to see more and more developers showing preference for BTR over BTS.”
