The number of build-to-rent (BTR) homes in the UK has jumped by 173% in the past five years as investment in the sector hit a record high in 2024.

New insight into Savills’ data by debt advisory and investment firm Excellion Capital reveals that 123,539 units have been built since 2019.

In total, the sector now totals 282,500 homes either completed or in the pipeline. However, it still only accounts for 2% of the UK’s total private rented stock.

London leads the way

London is the most mature market, as of the first quarter in 2024, with 54,352 completed BTR homes, marking an annual increase of 14% compared to the same period a year earlier.

But while London leads the way, the rest of the country is catching up, as the number of completed regional BTR homes increased by 19% during the same period.

This rapid growth comes as investment into the sector hits an all-time high. In 2024, about £5.2billion was invested in BTR across Britain, marking an annual increase of 11%.

Excellion Capital has also analysed Knight Frank’s average yield data for the London BTR sector - 4.9% - and found that BTR properties provide landlords with only slightly stronger yields than the capital’s general private rented sector at 4.4%.

However, average BTR yields in the North East sit at 7.6%, while yields average between 5% and 6% in the nation’s secondary cities.

The company said this should make the regions attractive to smaller developers and investors, since these projects will be comparatively cheaper to execute than those in London.

Robert Sadler, of Excellion Capital, added: “This is a sector that is growing at astonishing pace.

“London has been a useful proof of concept for both the demand for BTR homes and the returns available to investors, so now it’s spreading across the whole country, not least our secondary cities such as Manchester, Newcastle, and Birmingham.”

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