Savills News

Savills: Record £3.17bn invested as UK housebuilders increase focus on Single Family Housing

New research from Savills reveals that UK housebuilders are accelerating their shift towards the Single Family Housing (SFH) sector, supported by a record £3.17 billion of investment in 2025. Savills attributes this growth to a broader capital pool targeting SFH and increasing willingness among investors to co‑locate on the same sites and masterplans, signalling rising confidence in the sector’s depth of demand and long-term prospects.

According to the report, housebuilders are increasingly adopting SFH to bolster sales rates, support long-term delivery and improve returns on capital. Challenging market conditions in recent years have led many to diversify routes to sale, moving beyond the traditional private buyer and embracing institutional bulk sales. As more housebuilders transition towards a Return on Capital Employed (ROCE) model, SFH offers faster absorption rates, reduced capital requirements and more resilient delivery.

Savills Research recently conducted a UK Single Family Housing (SFH) survey, speaking with 10 housebuilders that have collectively sold more than 15,000 new homes to investors over the past five years. While only a minority planned significant SFH sales five years ago, 50% now expect to sell more than 15% of new homes to SFH investors between 2026 and 2030, signalling a step change in strategy.

Guy Whittaker, Associate Director and Head of Build to Rent Research at Savills, says, “Our survey shows a fundamental shift in housebuilder strategy, with Single Family Housing now firmly embedded in delivery plans rather than used simply to counter short-term market pressures. With SFH accounting for 59% of total Build to Rent investment in 2025, and 80% of housebuilders planning to increase their SFH delivery, the sector shows no sign of slowing.”

Savills highlights that a key advantage of SFH is the ability to recycle capital quickly, particularly on higher-value or large strategic sites. Early parcel sales allow developers to fund subsequent phases, infrastructure and placemaking. This is becoming increasingly important as planning activity concentrates on larger schemes. In 2024, the latest full-year available, 43% of homes granted full consent were on sites of 250+ units, up from one-third between 2015 and 2017. Many housebuilders cited increased output, accelerated delivery and improved ROCE as their key motivations for expanding SFH sales.

The findings from Savills survey showed that 80% of housebuilders now view sales to SFH investors as a long-term component of their delivery strategies, rather than a short‑term response to slower private sales. Every housebuilder unanimously said that they consider SFH investors when acquiring land, reflecting a proactive shift in how sites are planned and designed. Many are now specifying unit types for investor demand from the outset to ensure schemes remain commercially balanced while meeting rental demand for highly lettable two and three-bedroom homes, according to Savills.

The real estate advisor states that investor demand for SFH remains robust, driven by stable occupancy, strong suburban rental performance and the appeal of new build stock. This has created opportunities for multiple investors to operate successfully on the same large sites, supported by the depth of tenant demand and sustainable rental headroom. Several major developments, including Great Haddon and Whitehouse, have already seen multiple SFH transactions, with some sites nearly a quarter of homes into the sector. While successful co‑location requires careful phasing and differentiation in design, specification and pricing, it offers investors greater confidence and supports more efficient delivery for housebuilders.

Piers de Winton, Head of Single Family Housing at Savills, adds, “Single Family Housing is increasingly becoming a key part of the UK’s rental landscape. Demand for professionally managed family homes continues to strengthen, particularly in suburban markets, and investor appetite is deepening. Housebuilders are responding by integrating rental homes earlier in the development process, reflecting the sector’s growing role in large‑scale delivery. While regulation is evolving, the sector is well placed to adapt and continue providing stable, long-term housing in the locations where rental demand is rising most.”

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