Hertfordshire is fast emerging as one of the most attractive Build to Rent destinations in the London commuter belt as population growth, strong incomes and a chronic undersupply of rental homes combine to boost investor appeal.
A new investment report from strategic consulting firm GAA Living highlights Watford, St Albans and Stevenage as the county’s standout locations for 2026 and beyond.
All three benefit from fast rail links into the capital, sustained professional demand and extensive regeneration programmes that are creating fresh opportunities for institutional investors.
The Hertfordshire Rental and BTR Market Snapshot points to powerful demographic drivers. The county’s population has grown by around 20% since 2000, rising to more than 1.23 million, with growth exceeding 30% in Watford and Welwyn Hatfield over the same period. Many new residents are professionals and families seeking long-term rental accommodation rather than home ownership.
ECONOMICALLY ACTIVE TENANT BASE
GAA Living says the market is underpinned by an affluent and economically active tenant base, with an employment rate of 83.4% and gross disposable household income per head of £30,900.
Demand is strongest for modern one- and two-bedroom homes, but supply of purpose-built rental stock remains limited.
Watford is singled out as a major business and retail hub that has continued to deliver housing despite rapid population growth, while Stevenage is benefiting from large-scale regeneration and expanding employment in life sciences and technology.
PREMIUM COMMUTER TOWN
St Albans, meanwhile, remains one of the county’s most premium commuter towns, with tight supply helping to push upper-quartile rents above £1,800 a month.
East Hertfordshire has recorded the strongest rental growth, with prices up 4.4% over the past year and more than 41% over five years.
Across Hertfordshire, the BTR sector is moving from early-stage growth to a more established pipeline, with 926 completed homes, 264 under construction and more than 1,400 units either approved or progressing through planning.
Ronak Rawal, Senior Director at GAA Living, says: “Hertfordshire has clearly emerged as a key commuter belt growth market.
“Driven by strong demand fundamentals, regeneration activity and its strategic position within the UK’s Innovation Corridor, it’s a destination that demands attention from investors seeking stable long-term value.”
