Transaction volumes in the UK’s build-to-rent (BTR) market in Q1 totalled £736m, marking the lowest quarterly figure since 2017, according to new data from JLL.
In its quarterly BTR update, JLL revealed multifamily investment fell to its second lowest quarterly total over the last decade at £257m, marginally ahead of Q3 2023. This was partly balanced out by a strong start for single-family housing at £479m, 4% up on the five-year Q1 average.
Key transactions include Pension Insurance Corporation’s acquisition of the Ebb & Flow, a 598-bed multifamily scheme in Reading, from Lincoln MGT for £200m, bucking the wider trend.
JLL said this was not only the biggest deal of the period but also the UK’s largest single operational asset sale on record, overtaking Greystar’s £172m purchase of the Barking Wharf scheme last year.
Most of the single-family total came from Kennedy Wilson and Canada Pension Plan Investment Board’s expansion strategy, investing £300m in the sector.
Karl Tomusk, associate in the UK living research team at JLL, said a “subdued start to the year for BTR was not too surprising” as JLL expects an uptick in investment volumes to come towards the back end of the year.
“Given the uncertain geopolitical outlook and its economic ramifications, the growth in investment we were forecasting at the start of the year might be delayed,” he added.
“An already shrinking development pipeline is a further concern at a time when rental supply is coming under pressure from regulatory changes. This means that while conditions are difficult, the case and the need for development continues to be strong.”
JLL also revealed investment in student housing topped £2.2bn, the highest Q1 on record. In total, student accounted for 60% of the £3.7bn invested in UK living in Q1 2026.
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