H1 2023 Build to Rent investment activity

CBRE’s provisional Build to Rent investment figures for Q2/H1 2023 shows a slowdown, but the outlook remains positive.

Lower Essex Square Build to Rent development in Birmingham. The scheme received forward funding in H1 2023 | BTR News
Lower Essex Square Build to Rent development in Birmingham. The scheme received forward funding in H1 2023.

Global real estate advisor CBRE releases its provisional Build to Rent Investment figures for Q2/H1 2023. Figures show that a total of £1.9bn of investment was deployed into the UK Build to Rent sector in H1 2023. This is down from £2.4bn compared to the same period last year.

Following an encouraging first quarter, investment volumes for Q2 2023 reached £830m, down 41% on Q2 2022. Key transactions included L&G’s forward funding of Watkin Jones’ Loft Lines – a Build to Rent scheme in Belfast, and the forward funding of Lower Essex Square in Birmingham – a joint venture between Outpost Management and BlackRock Alternatives.

H1 2023 data also shows the highest level of investment into single-family Housing (SFH) Build to Rent on record, with £408m of investment in the first half of the year and a further £300m of SFH assets under offer. Data released by CBRE in April also showed record investment in SFH Build to Rent in Q1 2023.

“Despite a more subdued second quarter of transactional activity, the Build to Rent investment market remains robust with £2.3bn of assets under offer and a healthy pipeline of assets on the market.

“Our inaugural Build to Rent Index, launched last month, showed that the Residential sector has outperformed other commercial property sectors and thanks to its strong underlying fundamentals, it remains high on investor wish lists.”

Scott Cabot, Head of Residential Research, CBRE