Local government pension pool Border to Coast Pensions Partnership has agreed to purchase a portfolio of 866 single-family homes from rental provider Leaf Living for roughly £400 million.

The transaction covers 12 energy-efficient housing estates spread across the South East of England, including Berkshire, Essex, Hampshire, Hertfordshire, Oxfordshire, Surrey, East Sussex, West Sussex and Wiltshire. It represents the largest individual purchase in the UK single-family rental sector so far this year.

Leaf Living was originally established by investment firms Blackstone and Regis. For Border to Coast, which manages assets on behalf of its Local Government Pension Scheme Partner Funds, the deal marks its second acquisition in the single-family residential market.

The £120 billion pension pool has been accelerating its direct property acquisitions to generate resilient income and diversify its portfolio. The purchase follows a £70 million forward-funding agreement for 139 homes at Springstead Village in Cambridge in February 2026, alongside a £43 million investment for an aparthotel build in Leeds in May 2026.

15 Partner Funds currently subscribe to the Border to Coast UK Real Estate Fund. Launched 18 months ago, the fund holds over £2 billion in capital and is projected to expand to approximately £3 billion over the next 12 months.

“Our focus on high-quality residential property this year is helping reshape our real estate portfolio, future-proofing it for Partner Funds. Striking a deal of this size is testament to our partnership’s scale and expertise, and we are committed to providing additional value to the LGPS and its members. It is also a prime example of how deploying long-term capital can not only unlock access to strong structural opportunities but also contribute to tackling the country’s infrastructure challenges,” said Joe McDonnell, Chief Investment Officer at Border to Coast.

Aberdeen Investments and Savills acted as advisors to Border to Coast during the purchase, with legal counsel provided by CMS and Mourant. CBRE advised Leaf Living on the transaction.

“We are strong believers in the long-term UK single-family housing sector, underpinned by robust demand and a shortage of high-quality rental homes. At approximately £400 million, this is one of the largest and most significant investments we’ve advised on, reflecting our conviction in the sector and our commitment to delivering resilient, long-term returns for Border to Coast’s Partner Funds while supporting the provision of much-needed homes across the UK,” said James McLean, Fund Manager at Aberdeen Investments.

James Seppala, Head of Real Estate Europe at Blackstone, added: “This transaction reflects strong UK institutional demand for high-quality rental housing platforms, which can offer stable long-term income. Patient institutional capital has an important role to play in bringing further investment into professionally managed housing across the UK and we are delighted to partner with Border to Coast on this important transaction.”