BNP Paribas has released its Q3 2022 UK Build to Rent market update. The update highlights that the lack of affordability combined with a shortfall in housing stock for sale has resulted in strong demand for rental homes in the capital. London has been experiencing robust rental growth, with rents rebounding stronger in the capital than elsewhere in England. Near term rent rise expectations in the capital also remain elevated.
Although investor focus has shifted to key regional cities, and with the opportunities in single-family rentals, there is also a compelling investment case for London Build to Rent, which was reflected in key indicators in Q3 2022.
Other key highlights of the update include London construction volumes from September 2014 to 2022, Build to Rent investment activity and key London market activity in the quarter – including site acquisition, financing, forward funding, repurposing and completion of deals by Quintain, Amro Partners, Greystar, EcoWorld and Long Harbour.