London’s housing market is changing fast, and Build to Rent (BTR) is at the centre of it. With over 127,000 BTR homes already delivered and demand accelerating, this model is not just shaping how homes are rented, but also where and how new properties are built. For international buyers and private investors, that raises a key question: Does the rise of BTR make it harder or smarter to buy a new build home in London in 2025?
The short answer: it depends on where, how, and why you’re buying.
In this article, we explore the impact of BTR on pricing, availability, and opportunity, so you can make an informed decision.
And if you’re unsure where to start, our advisors are here to help. At Entralon, listen to your goals, recommend properties aligned with your interests and offer personalised guidance at no cost.
What Is Build to Rent in London and Should Foreign Buyers Pay Attention?
Build to Rent (BTR) is transforming how new build homes are being delivered across London, and international buyers should absolutely pay attention.
Unlike traditional Buy-to-Let, BTR homes are purpose-built for long-term rental and professionally managed, offering residents high-spec amenities, stable tenancy terms, and a lifestyle similar to serviced apartments. While BTR is primarily aimed at renters, its rapid expansion has major implications for pricing, location trends, and long-term investment potential, especially for buyers looking for value and capital growth.
As of Q1 2025, the UK has over 127,000 completed BTR units, with London alone accounting for more than 39,000 homes in the planning pipeline. Areas such as Stratford, Wembley Park, Newham, and Brent are leading this growth, concentrating new infrastructure, government investment, and regeneration efforts in a few select zones.
For foreign buyers, this presents a strategic opportunity. Purchasing in or around BTR-led neighbourhoods often means:
- Better rental demand
- Stronger tenant profiles
- Enhanced transport access (e.g., near the Elizabeth Line)
BTR hotspots often lead price growth over a 3–5 year horizon, offering strong potential for future rental income and long-term capital appreciation. For international buyers, purchasing near a BTR cluster typically means access to better infrastructure, higher tenant demand, and more predictable value growth, ideal conditions for both letting and future resale.
BTR vs Buy-to-Let: What’s the Difference?
How Is the UK Build to Rent Market Performing in 2025?
The UK’s Build to Rent (BTR) sector is showing strong resilience and growth in Q1 2025, despite wider challenges in the construction and housing sectors.
With record-level investment and consistent rental demand, BTR continues to outperform traditional housing segments, both in delivery volume and investor interest.
Here are the key Q1 2025 highlights:
- £800 million+ invested in BTR during Q1 2025 – the strongest first-quarter figure since 2022
- 127,000+ completed BTR homes now operational across the UK – a 16% increase year-on-year
- BTR now makes up 8% of all new build completions in England & Wales – up from 5% in 2019
- 99% of UK local authorities recorded rental growth exceeding house price growth over the past three years
- £500 million+ of Q1 investments were directed at Multifamily BTR projects in urban hubs, especially London and Manchester
- London alone holds over 39,000 BTR units in the planning pipeline, reinforcing its position as a national hotspot
For international buyers, this continued momentum confirms that BTR-led areas are attracting sustained development and institutional confidence, making them highly attractive zones for long-term property investment and value preservation.
Investor Insight:
Rental prices have risen faster than home prices in 99% of UK local authorities, indicating strong yield potential for buy-to-hold investors targeting BTR-led zones.
Where Are the Best BTR Locations in London for Buying New Build Homes in 2025?
Stratford, Wembley Park, and Newham are emerging as the most dynamic Build to Rent (BTR) zones in London, offering strong potential for long-term growth and high rental demand.
Driven by infrastructure upgrades like the Elizabeth Line and major regeneration plans, these areas are seeing concentrated development and institutional investment. For buyers looking to enter the London property market, this means better opportunities for value appreciation, tenant demand, and future resale flexibility.
Here are the top BTR-led areas to watch in 2025:
- Stratford (Newham Borough): A regeneration powerhouse with fast Elizabeth Line access and Olympic legacy.
Browse available new build homes in Stratford on Entralon - Wembley Park (Brent Borough): A masterplanned community with consistent BTR delivery and cultural pull.
Browse available new build homes in Wembley Park on Entralon - Herne Hill (Lambeth): An emerging hotspot for institutional BTR with proximity to Central London.
Browse available new build homes near Herne Hill on Entralon - Ealing (West London): A family-friendly district with expanding infrastructure and green spaces.
Browse available new build homes in Ealing on Entralon - Newham (East London Borough): One of London’s most ambitious boroughs, supporting BTR growth with affordable entry points and strong housing targets.
Browse available new build homes across Newham on Entralon
These BTR locations often receive early infrastructure investment, better management standards, and stronger rental yields, ideal conditions for overseas buyers seeking a reliable long-term asset.
London Area Comparison: Investment Potential & Key Features
Why Should International Buyers Pay Attention to BTR-Led Areas in London?
BTR-led regeneration zones in London offer international buyers access to high-quality new build homes with strong rental demand and long-term growth, often at more competitive prices than Prime Central London.
As institutional investors drive large-scale Build to Rent developments, a growing number of mixed-tenure schemes are making select units available for private purchase. These homes combine the advantages of professional management, prime locations, and future-proof design, while avoiding the inflated pricing of saturated central postcodes.
Here’s why this matters for you as an overseas buyer:
- Lower entry prices than traditional luxury zones like Mayfair or Knightsbridge
- More predictable rental returns, often supported by strong local tenant demand
- Better resale outlook, thanks to early-stage investment in regeneration areas
- Zero maintenance headaches, with on-site management teams and professional upkeep
- Eligibility for visa-linked investment pathways, depending on the property
Tip: Areas like Stratford and Wembley Park offer a rare combination of infrastructure, lifestyle, and affordability, making them ideal entry points for non-UK buyers entering the London market in 2025.
BTR-led vs Prime Central London
If you’re looking for low-hassle property ownership, steady rental returns, and the potential to secure a UK investment visa, buying in a BTR-led regeneration zone may offer better long-term value than traditional luxury postcodes.
How Is Forward Funding Driving BTR Investment in London in 2025?
Forward funding is playing a central role in accelerating Build to Rent (BTR) development across London, attracting institutional investors and unlocking large-scale delivery in regeneration zones.
In Q1 2025 alone, over £800 million was invested in BTR nationally, with £500 million of that flowing into multifamily schemes in key urban locations. As land availability tightens and construction costs remain volatile, forward funding has become a strategic solution—allowing developers to secure capital earlier and investors to gain early exposure to rental yields.
Key highlights from early 2025 investor activity:
- Legal & General partnered with Japanese developer Nomura to deliver 1,000+ rental homes, starting with a site in Herne Hill, Lambeth
- CompassRock re-entered the UK market, acquiring 295 apartments in Bristol’s Stafford Yard, marking the city’s first BTR deal since 2022
- Institutional capital is increasingly targeting “Multifamily” BTR projects over one-off Buy-to-Let investments
- Forward funding is enabling faster planning approval, phased delivery, and enhanced placemaking in zones like Greenwich and Ealing
For international investors and developers, understanding forward funding trends provides a window into where large-scale, professionally managed rental communities will emerge next, and where capital deployment can align with rising demand.
What is Forward Funding?
Forward funding is when an investor commits capital to a development before construction begins, offering early-stage funding to the developer and early yield exposure to the investor. In London’s BTR market, it’s enabling faster delivery in high-demand areas.
How Forward Funding Works in Real Estate
- Developer secures land
- Investor commits funding pre-construction
- Planning secured
- Construction + phased delivery
- Units enter rental market → investor receives yield
Should You Buy a New Build Home Near a BTR Hub in London?
Yes, buying near a Build to Rent (BTR) hub in London can offer a smart mix of affordability, long-term growth, and reliable rental demand.
BTR-led areas are often the first to benefit from major regeneration projects, improved infrastructure, and institutional investment. For individual buyers, this means early access to rising neighbourhoods before prices peak.
Here’s why BTR hubs are smart buying zones in 2025:
- Faster infrastructure upgrades (e.g. Crossrail, new schools, parks)
- Stronger tenant demand ensures rental income if you let the property
- Capital appreciation driven by developer and government-backed regeneration
- High-quality design and amenities due to institutional standards
- Lower entry prices than Prime Central London but with high upside potential
Example: Buying in Wembley Park or Herne Hill offers better growth potential than more saturated luxury zones without sacrificing location, lifestyle, or build quality.
Who Should Buy in a BTR Hub?
Recommended for:
– Overseas buyers seeking rental income
– First-time investors with long-term horizon
– Families wanting infrastructure + lifestyle at a lower price than central zones
The Value Cycle in BTR Areas
- BTR-led investment enters area
- Infrastructure improves (transport, amenities)
- Tenant demand increases
- Property values rise
- Early buyers benefit from yield + capital gains
Final Thoughts
Is Buying Near a BTR Hub Right for You?
Investing in a new build property near a Build to Rent (BTR) hub in London offers a strategic opportunity for international buyers. These areas are experiencing significant regeneration, infrastructure enhancements, and robust rental demand, making them attractive for long-term capital growth and stable rental income.
Whether you’re seeking a home with strong appreciation potential or a property that offers reliable rental returns, BTR-led neighborhoods like Wembley Park, Herne Hill, and Stratford present compelling options.
Considering a purchase in a BTR-focused area? Entralon’s expert advisors are here to provide personalized, no-obligation guidance to help you find the perfect property that aligns with your investment goals.
Explore new build investment opportunities with Entralon
FAQ
1. What is Build to Rent (BTR)?
Build to Rent refers to residential developments specifically designed for long-term rental, managed by professional operators, and often featuring amenities like gyms and communal spaces.
2. How does Build to Rent differ from Buy-to-Let?
While Buy-to-Let involves individual landlords renting out properties, Build to Rent properties are owned and managed by institutions, offering standardized services and amenities to tenants.
3. Why should international buyers consider investing near BTR hubs in London?
BTR hubs are often located in areas undergoing significant regeneration, leading to potential capital appreciation and strong rental demand, making them attractive for international investors.
4. What are the benefits of forward funding in Build to Rent projects?
Forward funding allows investors to finance a development before completion, potentially securing better yields and influencing project specifications to align with investment goals.
5. Which London areas are emerging as top BTR investment hotspots?
Areas like Wembley Park, Herne Hill, and Stratford are notable BTR hotspots due to ongoing regeneration projects, improved infrastructure, and high rental demand.
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