UK Build to rent sector sees record investment

29th May 2019

Research from the CBRE reveals that the UK build to rent sector has seen record levels of investment in the first quarter of 2019. The report details Institutional investment volumes into the PRS and in Q1 one billion was transacted, with a further £772.9m worth of deals under offer. This represents one of strongest quarterly investment volumes recorded since 2015 and is a very positive start to the year. Interestingly the “build-to-rent” sector is referred to as “multifamily housing” in many parts of North America and Europe.

Built to rent investment graphAccording to the British Property Federation this equates to 140,000 new homes in the UK that have been completed or are in the pipeline. That is an increase of 1,981 homes over Q4 2018.

Much of the growth has been driven by international investment, with large North American funds being particularly active in London. European investors have been focused beyond the Capital with ventures and have displayed more willingness to invest in UK’s regional centres.

PRSim’s Sebastian Caunter (Operations Director) said “The latest CBRE Real Estate outlook makes very interesting reading. In particular that despite the Political uncertainty in the UK Investors still see the UK Property sector as reliable and resilient. The key as always is the identification of attractive and affordable investment opportunities, thorough due diligence and effective management to ensure that returns are maximised.

PRSim is a leading provider of services to the Private Rented and Build to Rent sectors (PRS and BTRS). This includes site sourcing, a full range of consultancy services, lease up strategies and operational management. Part of the LSL Property Services plc (a leading provider of residential property services incorporating both estate agency and surveying businesses), the asset management division has been managing PRS properties since 2008 and, with the recent launch of PRSim, it has seen significant investment in integrated technology and systems to provide a customer centric management solution for clients and residents alike.