Sectors record-breaking H1 investment volumes

UK Build to Rent sector recorded a total of £1.76bn investment in H1 2022, reflecting an 11% increase year-on-year.

UK Build to Rent sectors record-breaking H1 investment volumes CBRE | BTR News

Momentum continues in the UK Build to Rent sector with record-breaking H1 investment volumes. The sector recorded a total of £1.76bn investment in H1 2022, reflecting an 11% increase year-on-year, according to new preliminary data from global real estate advisor, CBRE. The pipeline for the remainder of 2022 points to meeting or exceeding 2021’s record-breaking year.

This is a new record for H1 investment in the sector. Investment volumes reached £900m in Q2 2022 – up 14% year-on-year from Q2 2021. The strong appetite for stabilised assets continued, accounting for £270m of Q2 2022 investment activity.

The sector achieved record-breaking investment volumes of £4.4bn in 2021, with 2022 set to match or exceed this based on year-to-date deals completed and the under-offer pipeline, which sits at £2.6bn.

Key deals transacted in Q2 2022 include Swiss Life Asset Managers and Mayfair Capital’s acquisition of the Duet scheme in Salford, the forward funding of Lisbon Street in Leeds by Cortland Group, and Get Living’s forward funding of Sherlock Street in Birmingham.

Capital has been mainly deployed across the regions in the second quarter, following first quarter activity that was concentrated in London and the South. Furthermore, 75% of investment for the second quarter was in prime regional centres, illustrating a return of confidence in the wider market.

“The UK Build to Rent sector is showing positive momentum and resilience in the face of headwinds, such as cost inflation and interest rate increases. The continued investment into regional markets across the UK is reflective of both investors chasing yield and the ongoing undersupply of stock.”

Scott Cabot, Head of UK Residential Research, CBRE

The regional focus is further reflected in the under-offer pipeline, with 87% of deals under-offer spread across regional markets. At a sector level, over £500m of deals under-offer are Single Family Housing, indicating strong growth for the sector this year.