Investment in London’s build-to-rent (BTR) sector rose 85% last year pushing it up two places to become the fourth best performing in Europe, according to JLL’s new European Multifamily Report.

BTR homes: Telford Homes’ City North development in London

Investment volumes jumped to €2bn (£1.8bn) from €1.1bn (£985m) in 2017. Activity in the capital helped boost total investment in the UK’s BTR sector to €6.8bn (£6.1bn) last year.

Of the 20 cities in the JLL rankings five are in England. Manchester ranked 11th with €700m (£628m) in investment, followed by Leeds in 15th and Birmingham and Brighton taking up the 16th and 17th spots.

“Residential investment in the UK has had a breakthrough year, at least in the European context. It is a signal of how far this market has progressed in five short years,” said Philip Wedge-Bernal, a JLL associate in EMEA living research. “This has cemented the UK’s place as a leading European hub for residential investment.”

Investment in Europe’s residential sector reached a record high last year, according to the report, rising 40% to €56bn (£50.2bn). The rise is attributed to large portfolio deals, greater M&A activity and increased cross-border investment.