2020 investment in Build to Rent continued despite Covid-19

New figures from Colliers reveals that investment in the Build to Rent sector continued in 2020 despite Covid-19.

Investment in Muse's New Victoria View Build to Rent development - Colliers International | BTR News
Muse's New Victoria View Build to Rent development, Manchester.

Some £3.5bn of the investment was placed in the growing Build to Rent sector in 2020 – despite the challenges of Covid-19. By the end of the year, the total Build to Rent pipeline stood at 126,085 units, a 17% increase on 2019.

UK residential investment volumes matched 2018’s all-time high – reaching £6.1bn in 2020, according to figures released by Colliers. £2.8bn of which targeted the London market.

While some commercial property sectors faced a hiatus in activity due to the uncertainty caused by the global pandemic, investment into residential property continued to increase, reaching 12% of all commercial real estate investment in 2020 – achieving yields of 4.4% in Q4 2020.

“UK residential property is a solid investment option in the UK, particularly in the burgeoning Build to Rent sector as there is a perfect storm of a shortage of housing, and a huge affordability gap, especially for those who want to work and live in London. Over the last year the sector has grown 20% and is going to continue to grow to meet the country’s housing needs.

“In addition to Build to Rent our cities, and in particular London, will always be attractive to overseas investors. Despite Brexit the UK is still a gateway location to Europe and America, providing access to a secure financial market and another currency to capitalise on.”

Andrew White, Head of Residential at Colliers