UK build-to-rent (BTR) investment activity in Q1 2025 reached £735.3m, up almost 40% on the same period last year, according to preliminary data from CBRE.
Key transactions that completed during the quarter included the acquisition of the 51-storey F1 apartment development (pictured) in Renaker’s New Jackson area of Deansgate, Manchester, by a partnership between L&G, Nest and PGGM.
Other notable deals included Barings agreeing a £152m forward funding deal with Glenbrook for a 618 residential-led mixed-use scheme on Kirkstall Road in Leeds, and in London, Goodstone agreed a £116m forward funding deal with the Hill/Peabody partnership for a 360-unit scheme in Dagenham Green.
CBRE said the pipeline points to strong momentum for the remainder of the year, with £1.4bn of deals under offer.
Tom Sinclair, executive director of investment properties at CBRE, said: “Development viability for new construction continues to impact transactional volumes but there is evidence this quarter of new forward funding deals in London, Manchester and Leeds for large lot size transactions. The investment is coming from both domestic and international capital which highlights the attractive fundamentals of the UK living sector.”
