The build-to-rent rental premium reached 12.3% in 2025, nearly double the 6.5% recorded in 2016, reflecting growing tenant demand for purpose-built accommodation

The UK build-to-rent sector recorded an 11.7% rise in completed homes over the past year, with cumulative completions jumping from 132,161 units in Q1 2025 to 147,670 in Q1 2026, according to new research from deposit alternative provider Zero Deposit.

The figures point to sustained expansion in a sector that has become a significant part of the UK’s rental housing landscape. BTR developments are purpose-built for long-term renters and typically offer a higher standard of finish and service than much of the wider private rented sector, including professional building management, concierge services, dedicated amenity spaces, bundled services, enhanced energy efficiency and pet-friendly policies.

Underpinning the sector’s growth is its ability to command a consistent premium over the wider market. The build-to-rent rental premium reached 12.3% in 2025, nearly double the 6.5% recorded in 2016, reflecting growing tenant demand for purpose-built accommodation. The average monthly rent across the sector now stands at £1,546, compared with £1,377 across the wider private rented sector.

Higher achievable rents continue to attract substantial investor interest. The first quarter of 2026 saw £795.4 million invested into the sector, up 1.1% on the same period last year. This follows annual investment of £5.3 billion across 2025, itself 6.6% above 2024’s total of £4.97 billion.

Sam Reynolds, CEO of Zero Deposit, said the results reflected both the quality operators deliver and the growing complexity of managing large rental portfolios.

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, he said.

He said: As the sector expands, rental growth and assets under management continue to increase, making the protection of rental income more important than ever. Many operators serve tenant groups who may not have access to a traditional guarantor despite being financially capable renters. Guarantor+ bridges that gap, enabling operators to maintain strong occupancy levels while ensuring appropriate regulatory protection for both landlords and tenants.