Investment in build to rent sector hits record high

Investment into the UK’s build to rent sector hit an all-time high during the third quarter of the year, with £1.43bn transacted between July and September 2020, according to the latest research from CBRE.

The level of investment represents a significant increase on the £83m transacted in Q2, owed largely to the impact of Covid-19 on the sector.

There are plenty more transactions in the pipeline, with £1.4bn worth of deals under offer at the end of last month.

Despite the ongoing market headwinds caused by the Covid-19 pandemic, CBRE says that 2020 will see the highest level of investment ever as investors look for long-term, secure income producing assets, with in the region of £4bn of build to rent investment anticipated in 2020, up 50% from last year’s levels.

Adam Burr, head of CBRE’s residential valuation team in Manchester, commented: “Over the last few months, we have seen a number of high-profile deals across the key regional centres which further underpin the robust nature of the market.

“And with the emergence of some new investors, some specifically targeting the regional markets, there appears to be a very optimistic outlook in the regional multifamily/single family space.”

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