Build to rent completions rise 11.7%
New research from Zero Deposit reveals that the UK’s build-to-rent sector has continued its strong growth trajectory in 2026, with both delivery and investment volumes increasing year on year as demand for professionally managed rental accommodation remains robust. As the sector expands and operators manage larger portfolios of high-value rental homes, protecting rental income is becoming an increasingly important consideration, driving interest in alternative risk-management solutions across the market.
Zero Deposit analysed the latest build to rent (BTR) market data* and found that the number of completed homes across the UK has increased by 11.7% over the last year, with cumulative completions rising from 132,161 units in the first quarter of 2025 to 147,670 in the first quarter of 2026.
The increase reflects the continued expansion of a sector that has become an increasingly important part of the UK’s rental housing landscape. BTR developments are specifically designed for long-term renters and offer, by design, a higher standard of finish and service than much of the wider private rented sector, including professionally managed buildings, concierge services, dedicated amenity spaces, bundled services, enhanced energy efficiency and pet-friendly policies.
Rental premium continues to strengthen
The continued growth of the sector is underpinned by its ability to command a significant rental premium over the wider private rented sector.
Analysis of market data shows that build to rent properties achieved an estimated rental premium of 12.3% in 2025, almost double the 6.5% premium recorded in 2016*. The premium has increased consistently over the last decade, demonstrating the growing appeal of purpose-built rental accommodation among tenants.
As a result, the average monthly rent across the UK’s build to rent sector now stands at £1,546, compared with £1,377 across the wider private rented sector.
The premium is even more pronounced in London, where the average build to rent property commands £2,560 per month, compared with a wider market average of £2,280.
The willingness of tenants to pay more reflects the enhanced living experience offered by many build to rent developments, including modern amenities, professional management, greater energy efficiency, lower maintenance issues and a range of resident-focused services.
Build to rent investment remains strong
The ability to achieve higher rental values continues to attract substantial investor interest.
The first quarter of 2026 saw £795.4 million invested into the UK build to rent sector, marking a 1.1% increase compared with the same period last year.
This follows a strong performance throughout 2025, when annual investment reached £5.3 billion, 6.6% higher than 2024’s total of £4.97 billion.
Given the momentum already demonstrated during the opening months of 2026, the sector appears well positioned for another year of significant growth and investment.
Protecting rental income becomes increasingly important
While higher rents make build-to-rent an attractive proposition, they also increase the importance of protecting rental income. Significant development costs, premium rental values and the impact of void periods or arrears mean operators are increasingly focused on reducing financial risk.
The introduction of the Renters’ Rights Act has further accelerated this trend, limiting some traditional risk-management practices and encouraging the adoption of alternative solutions.
Insurance-backed guarantor products are coming under increased focus, particularly as many build-to-rent schemes attract international renters, overseas students and young professionals who may struggle to meet traditional affordability checks or provide a personal guarantor.
One example of this is Touchstone’s adoption of Guarantor+, Zero Deposit’s regulated insurance alternative to a traditional guarantor. It is designed for tenants who are financially able to rent but do not have access to a UK-based guarantor, including international renters, students and young professionals.
By removing the need for a traditional guarantor, Guarantor+ streamlines the letting process while maintaining protection for operators. This helps widen the applicant pool, reduce void periods and support faster occupancy, while strengthening income certainty in a changing regulatory environment*.
Harpreet Dosanjh, Associate Director and Head of Build to Rent at Touchstone, commented:
“The continued growth of the Build to Rent sector, alongside rising rental premiums, is reinforcing the importance of protecting rental income and maintaining operational efficiency across larger and more complex portfolios.
As the sector expands, operators are also adapting to an evolving regulatory landscape shaped by the Renters’ Rights Act, while continuing to serve a diverse customer base including students, young professionals and international renters who may not have access to a traditional UK guarantor.
In response, we selected Guarantor+ due to its straightforward claims process and three-year cover, which provides greater certainty than many alternative products offering shorter terms. This solution helps reduce barriers for prospective residents while supporting landlords in maintaining a broad and accessible customer base, particularly in student-heavy locations.
Ultimately, we selected Guarantor+ because it provides peace of mind across the board, from a partner that understands the realities of the Build to Rent sector.”
Sam Reynolds, CEO of Zero Deposit, commented:
“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.
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.
Our product is perfectly placed for a rental market that has faced significant disruption and change. We have the only solution that provides regulated protection for both tenants and landlords, an increasingly important consideration in the context of the Renters’ Rights Era and the growing risks associated with it. We work with over 30% of the UK’s BTR operators and products like Guarantor+ are helping to provide greater long-term security, operational efficiency and compliance support across the sector. As adoption grows, these solutions are playing an increasing role in supporting the sector’s long-term success.”
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