BTR and SFH investment activity hit £1.3bn in Q4 2023

A new report by BNP Paribas reveals that Build to Rent and single-family housing (SFH) investment activity hit £1.3bn in Q4 2023.

The Renshaw's Yard Build to Rent development in Staines-Upon-Thames. Dandara Living and Greystar have signed a forward funding deal to deliver the scheme | BTR News
The Renshaw's Yard Build to Rent development in Staines-Upon-Thames. Dandara Living and Greystar have signed a forward funding deal to deliver the scheme.

Financial services provider BNP Paribas has released insights from its latest report, highlighting that investment volumes across Build to Rent and single-family housing (SFH) hit c.£1.3bn in Q4 2023, taking the total for 2023 to c.£4bn.

Despite challenges, the market was dominated by activity in SFH, with the launch of new partnerships targeting the sector as well as significant transactions over the quarter.

Long-term affordability challenges in the housing market – exacerbated by the higher mortgage costs and the removal of the Help to Buy scheme earlier in 2023 – left little choice for many people with aspirations to get on the property ladder. This continued to fuel demand for homes to rent in Q4 2023.

Pushing the growth of the SFH market included the landmark forward funding deal of c.3,000 Vistry Group homes by Leaf Living and Sage Homes for £819m. According to the BNP Paribas report, other notable Q4 2023 activity included the joint venture formation between Nuveen and Apache Capital to fund the development of single-family homes across the UK, and a deal between UBS and Matter Real Estate to invest in the SFH market, with an initial purchase of 560 stabilised homes across the UK.

In Build to Rent, the largest deals of the quarter included Greystar’s forward funding deal of Renshaw’s Yard for £141m and CDL Group’s forward funding of 1NQ in Manchester for £75.6m.