Real estate continues to prove to be unbeatable as a trusted form of investment. In 2024, the United Kingdom Real Estate market experienced all-time records in terms of Build to Rent (BTR) investment. According to Knight Frank, BTR investments reached a staggering £5.2 billion, marking an 11% increase from 2023.
 

The Rise of BTR and Regional Growth

Building to Rent (BTR) is a fantastic way to break into the real estate investment sector. It benefits everyone involved. Renters are able to secure long-term rental use of a property, while investors receive returns on their original investment.

Of the total £5.2 billion registered in 2024, Q4 was responsible for an incredible 36%, representing a total of £1.9 billion in transactions. The multifamily segment, referring to blocks of flats and complexes with multiple rental units, accounted for 71% of the total BTR investment value.

However, Knight Frank also reports an increased growing interest in Single-Family Housing (SFH), which accounted for another 36%, reflecting a £1.8 billion in BTR investment value. While it remains to be seen whether SFH will play a larger role in years to come, it represents an interesting investment option, nonetheless.

Unsurprisingly, London continues to be the centre of attention, representing 32% of the total BTR investment. However, regional variance and growth play a large role in these tremendous numbers, particularly in Manchester and Birmingham, key cities that continue to attract investors seeking strong rental demand and lower entry costs when compared to London, ultimately contributing to the staggering 68% not focused on the British capital.

Another fine example is Glasgow’s Tradeston area, an emerging hotspot undergoing significant urban regeneration through projects like Cook Street, which builds on the transformation of Buchanan Wharf. Once fragmented by industrial units and vacant lots, Tradeston is now experiencing an influx of residential developments, including BTR projects, reinforcing the trend of city-centre expansion and long-term rental demand.

Foreign Investment and Future Outlook

With so many countries where investing in real estate can be a profitable investment, the UK remains a key international player. In fact, the country is on the eyeline of many international investors, who, for the first time, outpaced UK-based investors. North American investors, in particular, contributed a total of £2.8 billion, emphasising just how much the UK is seen as a viable, secure country to do property investment.

The numbers do not lie. Current numbers estimate there to be nearly 60,000 units under construction, with more than 105,000 homes currently undergoing licensing permission. The UK BTR as a secure form of real estate investment is only growing and is not looking to stop anytime soon. Savvy investors seeking to diversify their portfolios and commit to long-term stability can find excellent solutions in the United Kingdom.