New BTR investment report highlights top Hertfordshire hotspots for 2026

Hertfordshire’s rental market is underpinned by a stable and affluent tenant demographic. The county enjoys an employment activity rate of 83.4%, with a gross disposable household income per head of £30,900. GAA Living reports that the rental market is characterised by limited supply of high-quality, purpose-built rental stock and sustained demand for modern one- and two-bedroom homes. 

Key commuter towns such as Watford, St Albans and Stevenage lead the way in terms of investment potential. All three benefit from fast rail access to London and extensive regeneration activity, with mixed-use developments creating new opportunities for institutional Build to Rent (BTR) investment across the county. Hemel Hempstead, Welwyn Garden City and Hatfield also offer a tantalising combination of strong rental demand, growing employment hubs, expanding amenities and a deepening professional tenant base. 

Looking deeper, each location offers a nuanced set of characteristics that appeal to investors. Watford, for example, is a major business and retail centre that stands out for maintaining a healthy housing stock despite rapid population growth, signalling resilience in delivery capacity. Elsewhere in the county, St Albans is a premium commuter location with historic character, excellent schools and some of the highest rental values in the county (with upper-quartile pricing above £1,800/month). There, tighter supply has resulted from strong demographic growth outpacing new housing, creating potential hotspots for future residential investment. This can be seen in East Hertfordshire too, which leads the county in terms of rental price growth, with increases of 4.4% over the past year and 41.4% over the past five. 

Strategic BTR growth in Hertfordshire is led by Watford and Stevenage, a town undergoing large-scale regeneration and with major employment growth in life sciences and technology. Other areas, such as North Hertfordshire and Welwyn Hatfield are lagging behind in terms of BTR delivery at present but offer strong potential for projects that can accelerate this in high-demand locations. 

Across the county as a whole, the BTR sector is transitioning from early-stage growth into a more established pipeline. Investor confidence is growing, as the county’s 926 completed homes and 264 units under construction signal steady near-term delivery. Momentum is also clearly building, with 1,178 additional units already granted planning permission and a further 305 units working their way through the planning system. 

Ronak Rawal, Senior Director, GAA Living, comments: “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.” 

The Hertfordshire Rental and BTR Market Snapshot is now available to view here.