Aviva Investors has completed the forward funding of 133 homes in Wixams, Bedfordshire, under its partnership with Packaged Living. The investment, made by Aviva Investors Real Estate Active Long Term Asset Fund, means that its UK single-family housing platform has now funded more than 1,500 new homes for a total commitment of almost £575M.

It was the 11th funding by Aviva Investors since launching its partnership with Packaged Living in 2021 and the partnership’s second forward-funding transaction with Barratt Redrow, which will deliver the homes.

However, for the fifth quarter in a row, BTR completions have outstripped starts, according to new figures from the British Property Federation and Savills.

Aviva Investors’ latest funding is for a scheme situated in the 750-acre Wixams master plan development 2 miles south of Bedford town centre, which is expected to total approximately 4,500 homes. The 133 homes being funded by Aviva Investors are split between two- and four-bed homes, targeted at an A energy performance certificate.

“We are pleased with the growth of our single-family housing platform, having set out with the initial expectation of funding 1,000 new homes,” Aviva Investors Managing Director of Real Estate Ben Sanderson said in a statement. “The living sector is a core part of our real estate investment strategy. Having already invested approximately £800M into UK living, we have an ambition to grow that commitment significantly over the next three to four years.”

The announcement came as analysis from the BPF and Savills showed more than 17,000 BTR homes completed between the first quarter of 2024 and Q1 2025, bringing the total number to 127,150, including more than 55,400 homes completed in London and 71,700 across the regions.

However, completions outpacing starts has meant a 14% contraction in the number of homes under construction nationally, with London seeing the steepest fall at 18% year-on-year to just 15,000 homes under construction, while the regions dropped by 12% to 34,870 homes.

Over the past 12 months, consented homes have risen 13% and the total number of homes in planning has grown by 5% to 109,920 units. But detailed planning applications have fallen 16% since the last quarter, raising concerns over longer-term supply.

“Completions remain robust, and planning activity is holding up well, but the sector is facing a real bottleneck in progressing schemes,” BPF CEO Melanie Leech said of the latest figures, highlighting the role of the Building Safety Regulator in delays.

“Viability challenges, coupled with continued uncertainty around project timelines are slowing momentum just at a time when rental demand is rising sharply. Investor appetite is there but unlocking it will require a concerted effort.”