Build-to-Rent investment volumes down in H1 2023 but outlook remains positive

A total of £1.9bn of investment was deployed into the UK Build-to-Rent (BTR) sector in H1 2023, down from £2.4bn in the same period last year, according to provisional data from global real estate advisor, CBRE.

Following an encouraging first quarter, investment volumes for Q2 2023 reached £830m, down 41% 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.

According to the data, H1 2023 saw the highest level of investment into Single-Family Housing (SFH) on record, with £408m of investment in the first half of the year and a further £300m of SFH assets under offer.

Scott Cabot, Head of UK Residential Research, CBRE

Despite a more subdued second quarter of transactional activity, the BTR investment market remains robust with £2.3bn 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.

Scott Cabot, Head of UK Residential Research, CBRE