Investors want BTR. They just don’t necessarily want to build it.

One of the most interesting themes from Bisnow's BTR annual conference 2026 last week was the distinction between investor appetite for BTR and appetite for BTR development.

Iain Murray's market outlook highlighted a number of positive indicators for the sector. Rents continue to rise, incomes are forecast to (slightly) outpace inflation, land values are softening and new institutional sources of capital are emerging through initiatives such as the National Housing Bank and the consolidation of Local Government Pension Scheme funds.

The fundamentals are clearly there.

Comments from John German of Invesco and Jurriën de Koning of Hines reflected an interesting take from the perspective of investors/funds: a definite preference for stabilised, income-producing BTR assets over development opportunities.

That is perhaps unsurprising. While occupational performance remains strong, development viability continues to be challenged by construction costs, financing costs and regulatory requirements. Existing assets offer proven income and significantly less execution risk.

In many ways, this reflects the maturation of the BTR sector. Investors no longer need to buy into a development story when they can acquire operational assets with established performance.

The challenge is what this means for future supply.

Demand for professionally managed rental housing remains strong and capital continues to target the Living Sectors. Yet if development remains difficult to underwrite, the market risks seeing more capital chasing existing stock rather than funding the next generation of homes.

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