2023 Build-to-Rent Investment Volumes Surpass 2022 Levels

UK Build to Rent (BTR) investment volumes in 2023 surpassed 2022 levels by 10%, reaching a total of £4.3 billion for the year, according to preliminary data from global real estate advisor, CBRE.

Investment into the sector accelerated in Q4 2023, following a more subdued Q2 and Q3, with almost £1.6 billion of investment recorded in the final quarter. This compares to £483 million of investment in Q4 of 2022. Quarter four activity significantly outperformed the previous quarter (Q3 2023), which saw £550 million of investment.

Volumes in Q4 2023 were bolstered by £1.2 billion of single-family housing (SFH) investment activity. The total amount invested into SFH during 2023 was £2 billion and accounts for 47% of the total annual investment into BTR. This is up from the £272 million of SFH investment recorded in 2022.

Major deals from Q4 include Blackstone’s £800 million single-family deal with Vistry, Greystar’s £141 million forward funding of Renshaw’s Yard in Staines-Upon-Thames, and the £76m forward funding of 1NQ by CDL in Manchester.

Following a subdued third quarter, the build-to-rent sector rebounded significantly in Q4 with notable investment activity, particularly in Single Family Housing as more housebuilders seek to de-risk their schemes through a SFH strategy. As we enter 2024, investors will be buoyed by tentative signs of a broader economic recovery and interest rate stability, which should lead to greater pricing certainty and strengthen appetite for BTR opportunities.

Andrew Saunderson, Head of Residential Capital Markets, CBRE