Q1 and Q2 activity varied widely as pendulum swings between multifamily and single family investments

Build-to-rent (BTR) investment is down 22% year-on-year to £2.2bn in the first half of the year (H1), according to research from JLL.

In the first half of 2025, BTR investment was also down 11% (from £2.48bn) on the five-year January to June average .

Multifamily investment dominated in H1, reaching close to £1.4bn, but almost three quarters of that activity occurred during Q1, with investment slowing in Q2.

rent btr

Notable multifamily transactions in 2025 include KKR’s acquisition of the 424-unit Slate Yard scheme in Salford from Legal & General for approximately £100m. 

Marcus Dixon, head of UK Living and Residential Research at JLL predicts that despite the Q2 slowdown, multiple deals currently in negotiation suggest increased activity may resume in H2.

Overall in H1, single family housing accounted for approximately a third of BTR investment, at £816.7m of £2.2bn.

Single family dominated Q2 activity, however, with more than £575m invested, representing 60% of investment in the BTR sector last quarter.

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Notable transactions included Greykite’s £80m acquisition of two portfolios from Keepmoat and Barratt Redrow through its Uniqhomes brand, and Lloyds Living’s acquisition of 598 homes in partnership with Barratt Redrow.

In Q3, JLL predicts the “momentum is set to continue” with several significant deals completed and in the pipeline, including Blackstone’s £225m single family portfolio acquisition from Placefirst in July. 

Dixon said: “”Investment in the UK build-to-rent sector hit £2.2bn in the first half of 2025. The pendulum, which had swung firmly towards multifamily investment in Q1, shifted to single family in the second quarter.

“Viability challenges and difficulties in progressing schemes through the Gateway process are clearly impacting activity in the multifamily sector. While some investment has been redirected to single family, it’s worth noting that the quieter Q2 for multifamily followed two particularly active quarters. With numerous deals in the pipeline, we anticipate a potential uptick in activity as we move into the second half of the year.