Wise Living reflects on SFH BTR growth forecasts from JLL

Single-family housing (SFH) provider Wise Living has backed JLL predictions that SFH Build to Rent investment will continue to grow.  

Wise Living's SFH Build to Rent homes | BTR News
Wise Living's SFH Build to Rent homes.

The insights from Wise Living are based on the company’s involvement with 50% of the UK’s existing SFH Build to Rent stock and the JLL 2023 Investor Survey’s strong sector growth forecasts.

JLL surveyed 133 investors in January 2023. In response to the question “which sectors do you expect to provide the greatest opportunities over the next five years”, one in five investors selected single family rental. The sector was the most popular response behind only life sciences and distribution and logistics, out of 13 real estate sectors.

JLL’s Single Family Rental report examines growth of the sector in the UK, following some £2.8bn in investment and £12bn in investor strategies. The report predicts the SFR market will grow from 9,400 homes in 2022 to 50,000 homes by 2025.

JLL have reported that only 20% of investors that were surveyed are expecting SFH to provide the greatest opportunities over the next five years. Paul Staley, Managing Director of Wise Living queries the relatively low confidence expressed by real estate investors.

“It is surprising that only 20% of real estate investors surveyed by JLL expect SFH to provide the greatest opportunities over the next five years. For me, the changes in the Build to Rent space have been undeniable over the past decade, and increasingly we are seeing SFH being spoken about in its own right, and for good reason. This talk has translated into real results, with the number of deals agreed in the UK’s SFH market in Q1 2023 valued at £450m, surpassing the full-year 2022 investment total of £330m, according to the Knight Frank Single Family Housing Report. The question now is can this be sustained and will it continue? My answers is yes. Our existing work and current development pipeline points to a flourishing SFH sector. Suburban family rental homes are replacing home ownership and with many private landlords exiting the industry due to economic pressures, institutional investment opportunity is only growing. The opportunity now lies in the hands of institutional investors. To truly unlock this sector’s potential, a forward-looking and long-term perspective is needed. As the industry continues to flourish, we are working with investors to align their investment strategies with this momentum.” 

Paul Staley, Managing Director (MD), Wise Living

Wise Living has stated seeing a 93% increase on new SFH Build to Rent tenancies starting in 2022 compared with 2021, with 2023 set to surpass this figure.

The company has also reported strong occupancy rates of over 98% and low arrears of 0.6%, which points to the success of the model as a reliable investment option going forward.