According to the latest figures recently released property consultancy Knight Frank, institutional investment into the UK Build to Rent (BTR) market totalled £1.7 billion in the first half of 2022. Although the market has seen recent quarterly fluctuation – particularly through the COVID pandemic – overall investment is still 25% higher than the long-term average.
According to Knight Frank, this data, which tracks both on and off market deals, points to the ongoing resilience and strong investment appeal of the sector. A further £3.1 billion worth of deals is likely to complete by the end of 2022, with total yearly investment expected to hit £4.8 billion.
One factor driving the BTR market, is that rent levels have continued to rise across the UK through 2022, with many indicators suggesting rental growth is at a multi-year high across the UK.
Strong rental performance across the UK is being driven by an ever-deepening mismatch between supply and demand. As has been the case since early 2020, there is a significant gap between new tenant enquiries and landlord instructions, which is likely to keep upward pressure on rents in the short to medium term.
Alongside our regular articles on the traditional Buy-to-Let market we will continue to watch developments in the Build-to-Rent sector and report significant events and changes as they occur.
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