1st
Jan 2016
Large-scale investors are set to invade Britain’s rapidly increasing Build to Rent sector and is forecasted to triple by 2020.
The national agents forecasts the increased involvement and believes that up to £50 billion will be invested into the sector within the next five years. The company estimates that this amount will account for 5% of the PRS by 2020, at present it stands at 2%.
All of those who took part in the research had plans to either invest the same as they had done or increase on their current amount of investment in the next five years; 71% stated that they had every intention of holding their assets for at least ten years.
Some of the institutional investors that responded, predicted that they would invest in London and other city centre markets which would be split evenly. Others said that their decision on where to invest would be solely down to areas which enjoy higher yields.
The research is not good news for the Scottish government that is attempting to bring in rent controls.
38% of respondents stated that if rent controls came into being then they would no longer continue in future investments, although the same numbers of investors said that they would still consider investing in Scotland, even if the caps were to be introduced.
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