Despite the challenges across global markets and political uncertainty in the UK, 2024 so far has seen institutional investment continue to flow into the build-to-rent sector here. The second quarter of 2024 saw £1.2 billion of investment according to Savills, with single-family rental housing taking a large portion of that.
Everyone with a long-term investment outlook has been targeting the sector, from pensions to sovereign wealth, insurance to endowments. Naturally investors with a long-term outlook require stable environments, whether that be economic or political stability. On the latter there are early signs of this with the new Labour government. There is a natural alignment with long-term patient capital and renters, both want good-quality, well managed and sustainable homes. For the first time in a generation, the quality of rental offering across the country is rapidly improving.
Although BTR completions are at record levels according to the British Property Federation, research by Savills has shown that there are still 30% fewer homes to rent across the UK compared to the 2018-2019 average. The UK must attract and retain international investment to ensure more high-quality homes for rent are built quickly.
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