The UK’s residential real estate market is undergoing a significant transformation, driven by the rapid growth of the Build-to-Rent (BTR) sector and the increasing prominence of Single-Family Housing (SFH) within BTR investment strategies. This shift is attracting the attention of asset managers and investors, with the sector seeing investment volumes for BTR reaching the £5 billion mark in 2024, surpassing the previous record of £4.8 billion achieved in 2022. Investment in SFH made up almost £2.5 billion of this figure, reaching new highs (Savills).
Investors are drawn to the BTR sector due to the superior yields it offers compared to the general private rented sector, with even greater growth shown in investment in SFH, supported by the operational efficiencies thanks to lower levels of communal services and amenity required and longer tenancy terms with fewer voids. As Rob Johnston, Managing Director at Invesco Real Estate, noted,
“The underlying fundamentals behind the growth of the UK SFR market remain highly attractive and are creating a strongly positive investment case for institutional investors”
More than 22,300 new BTR homes were completed in 2024, marking a record year of new delivery for the sector. The UK’s operational BTR stock – encompassing co-living, multifamily and single-family housing – now stands at over 126,000 homes, up by 21% year-on-year. A further 57,400 are under construction and 106,500 have full planning permission granted, taking the total size of the sector to 290,000 homes (Knight Frank). London remains the epicenter of this trend, accounting for 54,352 completed BTR homes as of Q4 2024 (BPF). However, the BTR market is now expanding beyond the capital, with 68% of completions in 2024 seen in secondary cities like Manchester, Newcastle, and Birmingham (Savills).
Additional rental supply has helped to improve more deprived areas of the country. By delivering new homes and community facilities, BTR has made an important contribution to local economic growth. Delivery has been tilted towards lower-value markets, where land values support development. Over half of BTR delivery to date has come in the three most deprived areas of rental markets, according to the ONS Index of Multiple Deprivation. These areas often contain former industrial brownfield sites which have struggled to attract investment into new housing stock over the last few decades. Brownfield development has been cited by the Government as a key source of housing delivery in the coming years and BTR will be key in supporting this.
SFH on the Horizon
A key development within the BTR sector is the growing prominence of Single-Family Housing. SFH now accounts for 51% of all BTR investment in the UK, with 14,000 completed SFH homes and a further 13,000 under construction (Savills). The Northwest region leads in SFH delivery, but the market is expanding to nearly 40% of local authorities in England and Wales (Savills).
Established UK Multifamily investors, such as Invesco, Hines, Pension Insurance Corporation, and Patrizia, have all announced plans to enter the UK SFH sector, diversifying their residential investment portfolios. This trend reflects the growing appeal of SFH within the BTR model, as it allows investors to tap into the demand for more spacious, resident focused rental properties.
Is it time to play follow the data leader?
PBSA has seen explosive growth in recent years and continues to lead the charge when it comes to tech adoption in residential real estate. Could it be time for BTR and SFH to take a page from PBSA’s playbook?
Utopi has played a pivotal role in this PBSA evolution, working with operators like Harrison Street Real Estate, Moda, and Downing (see more here) to drive operational efficiency, energy savings, and resident satisfaction through data and technology.
One standout example is Downing, a long-time Utopi partner. In 2024, Downing deployed Utopi’s Smart TRVs across select PBSA sites, leading to a 5,463kWh energy saving, a 34% drop in overheated rooms, and a cost avoidance of £87,058 -all through smart energy control and heating automation.
Beyond Downing, our work with Moda has focused on resident engagement and ESG data visibility, while our collaboration with Harrison Street emphasises scalable energy insights and portfolio-wide performance tracking. These partnerships demonstrate the value of smart tech in large residential portfolios.
As Bay Downing, Joint CEO of Downing and Downing Students, explains, Utopi’s “centralised controls have been a game changer for us – even in gas assets like these where the price point isn’t as tough as electricity.”
What can BTR and SFH operators learn from PBSA?
Here are three data-driven strategies BTR and SFH operators can adopt with Utopi to gain a competitive edge:
- App-first Engagement
Tackle revenue generation, resident experience, and ESG compliance in one place with a resident app. While residents control their own heating and energy use in BTR and SFH, Utopi provides the data and insights to help them make smarter decisions. Empower your customers with personalised, data-informed feedback on energy use, temperature preferences, and indoor environmental quality. Integrate this into resident apps or portals (we’ve partnered with Spaceflow! 👋) to drive behavioural shifts, reduce complaints, and increase retention, all while improving the environmental impact of your portfolio. Resident apps also open to the door to in-app revenue through purchases and bookings, and a direct line of communication without the need for on-site managers. - Proactive Asset Maintenance
Go beyond reactive fixes by analysing environmental trends (like humidity or air quality) and usage data to identify early warning signs of system strain or issues like mould and damp. This proactive approach reduces downtime, extends asset life, and improves service delivery while keeping operational costs in check. - Access the Best Finance
With automated ESG reporting through The Utopi Platform, our ESG Advisory Services, and alignment with GRESB and BREEAM Certification, accessing Green Finance is simplified with Utopi. Sustainability linked loans requires reliable data, as provided by Utopi’s IOT Multisensors and metering solutions. And when it comes time to invest or to exit, a company which can provide a robust green or social framework together with the data which underpins that framework and demonstrates the ESG benefits of the development and its impact on both its residents and its environment will fare considerably better, as the PBSA market has shown us.
As BTR and SFH sectors continue to gain momentum, operators and investors face increasing pressure to scale sustainably, deliver standout resident experiences, and meet rising ESG expectations. This is where technology becomes not just a tool, but a true strategic partner.
With a track record of success in the high-performance PBSA sector, Utopi has already proven the power of data in driving efficiency, reducing operational costs, and elevating the resident experience. These same tools, which have been refined and tested across complex, large-scale student portfolios, are now primed to support the next phase of growth in BTR and SFR.
Investors and Asset Managers embracing tech-enabled strategies today won’t just keep up, they’ll lead. Utopi is ready to help them do exactly that.