UK Build-to-Rent Investment Hits Record High in 2021


The UK Build-to-Rent sector recorded a total of £2.1bn of investment in Q4 2021, taking the full year total to a record high of £4.1bn, according to preliminary data from global real estate advisor, CBRE. Investment levels were up 14% on 2020, the previous record year, illustrating the resilience of the sector in light of the continued challenges posed by the Covid-19 pandemic.

In 2021, Build-to-Rent investment activity was evenly split between London and the Regions. Notable deals that completed in Q4 2021 included Greystar’s acquisition of a minority stake in the Fizzy Living platform, assuming management responsibilities for the portfolio alongside majority stakeholder, ADIA, Patrizia’s £100m forward commitment of Oliver’s Place, Huntley Wharf in Reading, Cortland’s forward funding of Colliers Yard, Manchester for c£158m as well as L&G’s £500m investment into schemes in London, Glasgow and Southampton.

 This positive momentum is expected to continue in 2022 with provisional data showing £1.95bn of deals under offer at the end of 2021.

The Build-to-Rent investment market had a stellar performance in Q4 with more than £2 billion of capital committed. This underlines the growing maturity of the UK Build-to-Rent market and reflects the phenomenal bounce back we have seen in the occupational market over the second half of the year. 2021 represents an undeniable record for the sector and with almost £2 billion of assets under offer, we expect this momentum to continue into 2022 as the sector continues to go from strength to strength.

Jason Hardman, Executive Director, Residential Valuation & Advisory Services