Since the beginning of the year and up to and including September there has been more than £2billion invested into the BTR (Build to Rent) sector across Britain.

pixabay.com

A worldwide commercial real estate services and investment organisation says that its latest UK Residential Investment Market view Q3 2019, shows there has been at least a £2.14bn investment into BTR UK schemes with several forward funding investments as well as direct site purchases.

In spite of the 'Brexit Effect' BTR investment increased in Q3 with £743m which was more than twice as much as its previous quarter's performance of £359.4m.

The majority of the transaction type was from forward funding in Q3 with £630m split between the capital and other UK cities.

The organisation's tracking shows that since 2014 there has been a total investment into the Build to Rent sector of £10.6bn

Helen Gray, senior director of multifamily consultancy in the organisation, said: “The demand for professionally managed, bespoke rental product continues to increase, from both investors and the renters themselves.

“Investors are attracted to the secure, long-term income profile and the diversification play of multifamily housing, all of which is all underpinned by the strong supply and demand fundamentals of the UK housing market. The transactions in Q3 illustrate investors are continuing to focus on London and regional cities, which is closely aligned to where the renter demand is.

“In addition, many investors are encouraged by the potential upside that can be gained from the right approach to product design and management. For renters, there is now a much greater appreciation for the lifestyle offer of multifamily – essentially paying for convenience, as well as a sense of community. And this is exactly what many of the multifamily operators aim to provide.

“Peoples’ lifestyle preferences are changing at a faster rate than materials can depreciate, which means our challenge is hyper-focused around how we create a built product that can evolve and retain its relevance and attractiveness over the long-term.”