Nearly £20B Of Capital Is Waiting To Invest In UK BTR
More than £19B of capital is looking to invest in UK build-to-rent residential schemes with planning permission, and the sector is set to see a record level of investment this year.
In its 2020 Multifamily Housing report, broker Knight Frank said £2.7B has been invested in the UK BTR sector so far this year and it expects £4B to be invested overall in 2020, with £19B sat on the sidelines waiting to get in the game.
An investment of £4B this year would take the total invested in professionally managed UK residential to £41B.
While this might sound like a big number, Knight Frank said BTR only represents 2% of the overall UK rental housing stock, which may indicate huge growth potential for the sector.
Knight Frank said investors are attracted to the sector’s rental resiliency, with rent collection rates through the coronavirus pandemic topping 95%.
“Rental markets have proven to be resilient in times of uncertainty in the past and this will support the market in the medium term,” Knight Frank Head of Residential Development Research Oliver Knight said. “In turn, this will drive further investment into the sector and we expect the capital committed will continue to rise as investors look to increase their exposure to real estate assets that offer secure and stable long-term income streams.”
Knight Frank teamed up with specialist residential firm HomeViews to analyse what it is about BTR residential that residents valued most during the lockdown period. Levels of service and community were the most commonly cited aspects in online reviews.