UK: Preliminary data from CBRE says UK BTR investment volumes in Q1 2025 totalled £735.3 million, up nearly 40 per cent year-on-year.
Several stabilised assets transacted in Q1, which could serve to underpin investment volumes throughout 2025. In addition, three forward funding deals totalling £420 million transacted in just two weeks across Manchester, Leeds and London.
Transactions included the acquisition of the 51-storey, 494 apartment development in Renaker’s New Jackson area of Deansgate, Manchester, by a partnership between L&G, Nest and PGGM, known as F1. In Leeds, global asset management firm, Barings, agreed a £152 million forward funding deal with Glenbrook for a 618 unit residential led mixed-use scheme at Kirkstall Road. Finally, in London, Goodstone Living agreed a £116 million forward funding deal with the Hill/Peabody partnership for a 360-unit scheme in Dagenham Green.
The pipeline also points to strong momentum for the remainder of the year, with a total of £1.4 billion of transactions under offer, which is broadly evenly spread across multifamily and single-family assets and development land.
Tom Sinclair, executive director, investment properties, at CBRE, said: “Development viability for new construction continues to impact transactional volumes but there is evidence this quarter of new forward funding deals in London, Manchester and Leeds for large lot size transactions. The investment is coming from both domestic and international capital which highlights the attractive fundamentals of the UK living sector.”
