Houebuilders target Build To Rent as mainstream sales stall

Houebuilders target Build To Rent as mainstream sales stall

UK housebuilders are accelerating their shift towards the Single Family Housing (SFH) sector of Build To Rent.

Analysis by Savills suggests there was a record £3.17 billion of investment in SFH 2025. 

According to the report, housebuilders are increasingly adopting SFH to bolster sales rates, support long-term delivery and improve returns on capital. 

Challenging market conditions in recent years have led many to diversify routes to sale, moving beyond the traditional private buyer and embracing institutional bulk sales. 

Savills Research recently conducted a UK Single Family Housing (SFH) survey, speaking with 10 housebuilders that have collectively sold more than 15,000 new homes to investors over the past five years. 

While only a minority planned significant SFH sales five years ago, 50% now expect to sell more than 15% of new homes to SFH investors between 2026 and 2030, signalling a step change in strategy.

The agency says early deals to provide SFH allow developers to fund subsequent phases, infrastructure and placemaking. This is becoming increasingly important as planning activity concentrates on larger schemes. 

In 2024, the latest full-year available, 43% of homes granted full consent were on sites of 250+ units, up from one-third between 2015 and 2017. 

The findings from Savills survey showed that 80% of housebuilders now view sales to SFH investors as a long-term component of their delivery strategies, rather than a short‑term response to slower private sales. 

A Savills spokesperson says: “Our survey shows a fundamental shift in housebuilder strategy, with Single Family Housing now firmly embedded in delivery plans rather than used simply to counter short-term market pressures.”

This article is taken from Landlord Today