A Knight Frank report has revealed that £30bn of capital has been invested into UK apartment-led build to rent (BTR), also known as multi-family housing, over the past 10 years.
Investors deployed almost £40bn into the UK’s wider build-to-rent market over the period, with multi-family housing accounting for 75% of that figure.
The multi-family housing market is rapidly shifting from a development-led sector into a hybrid market comprising development alongside trading of existing stock, the report found.
“While significant progress has been made in UK multi-family housing, the opportunity for scale and future market growth remains enormous,” said Nick Pleydell-Bouverie, head of residential investment at Knight Frank.
“Completed build-to-rent homes account for just 2.5% of rental households in the UK. Even a modest rise by global standards to 10% of the market being institutionally owned would require the delivery of an additional 467,000 units.”
Knight Frank’s data shows new market entrants accounted for around 40% of deals for operational multi-family property since 2020, while almost 60% of all multi-family housing investment in the UK came from overseas, with North American investors leading the way.
Pleydell-Bouverie added: “A decade of robust investment has pushed UK multi-family into a true trading market cycle, with more operational assets changing hands and new entrants increasing liquidity. Improving debt conditions are set to further accelerate deal flow.”
Supply‑demand imbalance provides a further tailwind, Knight Frank said. UK renters face scarcity of supply, with 4.2 tenants chasing every available home last year – well above pre‑pandemic norms – and available rental supply nearly 30% below pre‑Covid levels.
Knight Frank forecasts an additional 550,000 people will enter the private rented sector by 2036, rising to 1.5 million by 2050.
Lizzie Breckner, head of BTR research at Knight Frank, said: “Despite a decade of rapid expansion, the UK remains dramatically under-institutionalised.
“That gap is a core driver behind the sector’s accelerating trading activity, particularly among overseas capital, as institutional investors target ready‑made platforms capable of delivering both immediate income and long‑term scaling potential.”
