UK: UK BTR investment volumes in Q1 2024 reached £433.3 million, down from £1.2 billion in the same period last year, according to new preliminary data from CBRE.
Andrew Saunderson, head of residential capital markets at CBRE, said: “Investment into the sector in Q1 2024 has been more subdued, particularly relative to the end of 2023 which was bolstered by Blackstone’s partnership deal with Vistry. That being said, the pipeline of investment is robust with an estimated £1.6 billion currently under offer.
“Yields were stable this quarter for the first time since 2022, indicating that prices in the sector have stabilised. Looking forward, with the headline rate of inflation now standing at 3.4 per cent, the chances of a pre-summer interest rate cut have increased, which would be well received by the market. Government intervention, however, could hinder activity, namely, the abolition of multiple-dwellings relief as part of the Spring Budget, which will impact values, particularly in regional markets. Similarly, the continued uncertainty over the new rent control proposals for Scotland is also unhelpful for investors into the sector,” he added.
