More than £900 million was invested in the UK build to rent (BTR) sector in the third quarter of 2026, Savills reports.

Savills reveals year-to-date investment has reached more than £4 billion, which is above the level recorded at the same point in any previous year.

In each of the past three years, the fourth quarter has accounted for the largest share of annual investment.

This year already ranks as the sixth highest year on record, suggesting that the sector is well placed to achieve a new annual investment record.

Operational assets continue to attract significant investor interest.

Savills says this was highlighted by Border to Coast Pensions Partnership’s acquisition of a portfolio of 866 single family housing (SFH) homes from Leaf Living, which was founded by Blackstone and Regis.

Data found that development funding activity was concentrated outside London, with almost £300 million committed to suburban SFH schemes across five regions in England, highlighting the sector’s growing geographic reach.

Royal London also agreed to forward fund 111 houses and 173 apartments in Newton Heath, Manchester, although the funding environment for city centre development remains challenging.

Savills research also shows that rental growth was exceptionally strong during the summer. The Renters’ Rights Act came into force in May and has led to an acceleration in rents across England.

England’s largest cities recorded stronger rental growth in the three months to August 2026 than their respective historic averages. Birmingham was the exception, where high levels of rental supply limited landlords’ ability to raise rents.

This pattern extended across much of the country, with 72% of English local authorities recording stronger-than-average rental growth during the summer.

Savills head of BTR research Guy Whittaker says: “The acceleration in rental growth seen over the summer is likely to reflect a one-off adjustment in rents, rather than a sudden increase in tenant demand.”

“Under the new legislation, landlords can no longer accept offers above the advertised rent. As a result, many have taken the opportunity to rebase asking rents to ensure they reflect prevailing market values.”