UK: Data from CBRE shows that £1.76 billion has been invested in the UK BTR sector so far this year, a new record for H1 investment in the sector.
This represents an 11 per cent year-on-year increase, with Q2 2022 totals up 14 per cent year-on-year.
Q1 activity was concentrated in London and the south, whereas Q2 saw capital mainly deployed across the regions.
The H1 figures and the under-offer pipeline — which sits at £2.6 billion — indicate that 2022 is set to match or exceed 2021’s record-breaking £4.4 billion investment volume.
Significant deals in Q2 2022 include Get Living’s forward funding of the Sherlock Street development in Birmingham, Swiss Life Asset Managers and Mayfair Capital’s acquisition of Duet BTR scheme in Salford, and the forward funding of the Lisbon Street scheme in Leeds by Cortland Group.
The data also revealed that over £500 million of deals currently under offer are for single family housing, pointing towards significant growth for this area this year.
Scott Cabot, head of UK residential research at CBRE, said: “The UK BTR sector is showing positive momentum and resilience in the face of headwinds, such as cost inflation and interest rate increases. The continued investment into regional markets across the UK is reflective of both investors chasing yield and the ongoing undersupply of stock.”
