Investors are looking to deploy an estimated £8.1bn into the UK build-to-rent (BTR) market in 2024, according to a poll of BTR investors undertaken by Cushman & Wakefield.
Half the survey respondents have allocated more than 30% of their UK real estate portfolio to BTR for 2024. When asked about asset type, investors favoured amenity light, urban BTR schemes with mid-market rents, with London zones one to two emerging as the top location of choice for investors.
Sustainability was also a key consideration for investors, with 75% of survey respondents stating they would not be prepared to invest in a BTR scheme with an EPC rating of D or below.
Mille Harper, head of living research at Cushman & Wakefield, said: “There is undeniable strength in demand in the UK BTR sector, and despite 2023 being a tough market, the sector still managed to transact £4.3bn. There is plenty of optimism and enthusiasm amongst investors, attracted to the sectors defensive performance and underlying structural trends. With forecasts anticipating a gradual easing of monetary policy by the Bank of England in the second half of the year and construction cost inflation easing in 2024, there is some cautious optimism that BTR investment will increase in 2024.”
