Higher premiums continue to drive investment interest in build-to-rent sector
The build-to-rent sector has continued to boom this year, with completed homes rising 11.7% year-on-year (up from 132,161 units in the first quarter of 2025 to 147,670 in the first quarter of 2026) and 2025 rents averaging 12.3% higher than the wider private rental market, according to research from Zero Deposit.
The build-to-rent premium is nearly double the 6.5% premium recorded in 2016 with the average monthly rent across the UK’s build-to-rent sector now £1,546, compared with £1,377 across the wider private rented sector.
More pronounced in London
In London, the premium is even more pronounced, with the average build-to-rent property commanding a rent of £2,560 per month, compared with a wider market average of £2,280.
The premium on offer is driving substantial investor interest, according to Zero Deposit. In the first quarter of 2026, £795.4 million was invested into the UK build-to-rent sector, a 1.1% increase compared with the same period last year. During 2025, annual investment reached £5.3 billion, 6.6% higher than 2024’s £4.97 billion.
Sam Reynolds, CEO of Zero Deposit, said: “The build-to-rent sector continues to go from strength to strength, with increasing levels of investment, growing stock numbers and consistently strong tenant demand. In addition, the ability to command a rental premium reflects the quality, service and experience that build to rent operators provide.”
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