Research from Savills has revealed that UK housebuilders are shifting to single family housing (SFH) rental properties, with £3.17bn invested in the sector last year, up from £544m in 2022.
Savills’ latest UK SFH Spotlight report found that SFH accounted for 59% of build to rent (BTR) investment last year, up from just 6% in 2019.
Savills revealed that 10 housebuilders alone have sold more than 15,000 new SFH properties to investors in the past five years and there now 19,400 completed SFH rental homes across the country.
Four fifths of the housebuilders the firm surveyed plan to increase SFH development, while around half now expect to sell more than 15% of new homes to SFH investors between 2026 and 2030, “signalling a step change in strategy”.
Guy Whittaker, associate director and head of BTR research at Savills, said SFH is now “firmly embedded in delivery plans, rather than used simply to counter short-term market pressures”.
“With SFH accounting for 59% of total BTR investment in 2025, and 80% of housebuilders planning to increase their SFH delivery, the sector shows no sign of slowing,” he added.
Piers de Winton, head of SHF at Savills, said: “SFH is increasingly becoming a key part of the UK’s rental landscape. Demand for professionally managed family homes continues to strengthen, particularly in suburban markets, and investor appetite is deepening.
“Housebuilders are responding by integrating rental homes earlier in the development process, reflecting the sector’s growing role in large‑scale delivery. While regulation is evolving, the sector is well placed to adapt and continue providing stable, long-term housing in the locations where rental demand is rising most.”
Earlier this year, a report published by CBRE found that BTR investment had risen 14% year on year, with SFH investment rising 56% year on year.
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