UK: Provisional data from global real estate advisor CBRE has shown a marked slowdown in investment in to the UK BTR sector this year.
A total of £1.9 billion of investment was deployed into the sector in H1 2023, down from £2.4 billion in the same period last year. Following an encouraging first quarter, investment volumes for Q2 2023 reached £830 million, down 41 per cent on Q2 2022. Key transactions included L&G’s forward funding of the Loft Lines BTR scheme in Belfast and the forward funding of Lower Essex Square, Birmingham, by Outpost.
According to the data, H1 2023 saw the highest level of investment into single-family rental (SFR) on record, with £408 million of investment in the first half of the year and a further £300 million of SFH assets under offer.
Scott Cabot, head of UK residential research at CBRE, said: “Despite a more subdued second quarter of transactional activity, the BTR investment market remains robust with £2.3 billion of assets under offer and a healthy pipeline of assets on the market. Our inaugural BTR Index, launched last month, showed that the Residential sector has outperformed other commercial property sectors and thanks to its strong underlying fundamentals, it remains high on investor wish lists.”
