UK: Preliminary data from CBRE reveals £666 million was invested in the UK BTR sector in Q3 2022.
Investment in the sector this year to date is up to £2.84 billion, up 46 per cent from the same time last year.
Jennet Siebrits, head of UK research at CBRE, said the figures showed the sector’s “resilience in the face of counter-pressures in the wider economy”.
The figures showed that 84 per cent of an under-offer pipeline of nearly £3 billion in Q3 – an increase of £0.4 billion on Q2 – was in the regional markets, and £600 million of this investment was in SFR projects.
Siebrits warned that while UK investor interest had remained high until Q3, “the current market backdrop is less conducive to investment, and many [investors] will retain a holding pattern until markets have responded fully to the Bank of England’s intervention following the UK government tax cuts.”
CBRE said there were three major Q3 deals which had boosted the investment figures: Legal & General’s plans to invest £200 million for more than 715 BTR apartments in Central Quay, Cardiff; Round Hill Capital’s joint venture with Olympian Homes on a £165 million forward-funded scheme in central Manchester for 488 BTR homes; and Watkin Jones’ and German investment manager DWS’ joint venture to deliver 316 BTR homes in Bath under a forward funding deal of around £100 million.
