Transactions for the second half of 2019 have been subdued compared to the last two quarters of 2018, most likely as a result of market uncertainty around the General Election.  This does not tell the full picture though and with the number of deals currently under offer standing at around £1.5bn, this suggests a different, and much more positive story going into the beginning of 2020.  Indeed, there are some very significant deals throughout the UK, but particularly in the regions, with due diligence well progressed, which suggests that 2020 could be a record year for investment.

“Of particular note in Q4 was Grainger’s continued investment into the sector with three further transactions – a third forward funding deal in the Hallsville Quarter development in Canning Town, and two deals in Cardiff and Sheffield which indicates that appetite remains strong despite the disappointing volumes of transactions in the investment market.

“Moving into 2020 and beyond, the build to rent (BtR) market looks likely to continue its rapid expansion, especially with more and more developers considering it as a viable exit which should further boost investment, encourage new entrants into the market and should help alleviate the pressures of the demand/supply imbalance.  In addition, 2020 could see the first few valuations of ‘true’, operational BtR investments as they begin to trade in the market.