By Gemma Leonard
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Published 07 October 2026
Gemma Leonard, Head of Development and Real Estate Partner at international law firm DAC Beachcroft, looks at recent shifts in the delivery of Build To Rent (BTR), especially Single Family Housing, (SFH). This article first appeared in Housebuilder Magazine.
The pace of delivery of SFH has by no means caught up with demand. The challenge of viability has encouraged new alliances to be formed and there have been some recent significant market developments that should result in more accommodation becoming available.
While the interest of the country's major housebuilders in BTR isn't new, the more recent shift is the accelerated pace of this interest. Single family housing activity is now increasingly driven by bulk deals between investors and housebuilders. This is creating a more widespread delivery model at scale and creating long term investment opportunities. Single family housing is now a fundamental part of the housebuilder's strategy.
Different investors inject capital at different stages of the process; some preferring involvement at the start, others on completion with a greater involvement in management; others using a mixture of both. Flexibility is key to the future success of this maturing asset class.
Partnership working between housebuilders and institutional capital is a way to share risk and a means of facilitating pro-activity. Enduring partnerships are viewed as an ideal. They may be choppy at the start but become smoother and more efficient as understanding develops. Formation at the early stages of development is helpful. Investors have an opportunity to shape what is emerging and developers can be more adaptable to changes at the start of the process. Early involvement means that commercial risks are more easily appreciated and this way of working supports forward funding, with risks being better understood. Forward funding is more frequently used than forward commit.
Confidence is building in a maturing "Living" asset class, attracting a wider range of investors, in a wider range of places. UK and USA American money funded deals in the early days of BTR. The money is now being added to by Asia Pacific, Canadian and European investors and more cornerstone equity from the UK Government. In May the National Housing Bank (formed in March 2026) invested in Canada's Starlight UK BTR FUND II in May. In August, Spain's richest man, Ortega of Inditex, acquired a BTR scheme in London's West End for £150m.
The major housebuilders involvement in another area of the market, affordable homes, will also increase with the Government's recently announced £10bn affordable housing plan. Across the board greater collaboration has inspired innovative approaches and the "Living" sector is all the better for it.
DAC Beachcroft provide tailored legal solutions for the Living sector, including developers of build-to-rent sites, later-life living properties, and student accommodation. Visit our Living in Focus page to read our latest insights into the issues shaping the sector and find out how we can support developers and investors.
