UK housebuilders are accelerating their shift towards single family housing (SFH), recent research has revealed.
According to research carried out by property specialist Savills, this rental sector saw record investment levels of £3.17 billion last year.
A single-family home is a freestanding residential property, designed to be a single-dwelling unit and built for the specific purpose of being rented.
Savills attributes the growth in SFH to a broader capital pool targeting the area, as well as increasing willingness among investors to co‑locate on the same sites.
According to the research, 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 among 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 per cent now expect to sell more than 15 per cent 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 SFH now firmly embedded in delivery plans rather than used simply to counter short-term market pressures.
“With SFH accounting for 59 per cent of total build-to-rent investment in 2025, and 80 per cent 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.
The findings from Savills survey showed that 80 per cent 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.
Piers de Winton, head of single family housing at Savills, says: “SFH 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.”