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Build to Rent sector attracts record levels of investment





According to CBRE’s UK Residential Investment report, around £1.4 billion was invested in Build to Rent property in the first quarter of the year.

This positive start to 2019 has highlighted investor and end-user appetite for new-build property investments. Despite the on-going uncertainty surrounding Brexit, high levels of investment in the UK’s private rental sector is an encouraging sign for property investors.

What’s more, CBRE’s data suggests the second quarter of the year will continue to attract high levels of investment, with almost £780 million of transactions already under offer going into Q2.

Popularity of Build to Rent

Over the last few years, the UK’s Build to Rent sector has provided investors and tenants with a positive solution amid continuing housing supply chain issues.

Investors entering the Build to Rent sector benefit from the expertise of a housebuilder who has pinpointed a prime location with an undersupply of housing, and tenants benefit from the addition of much-needed new-build properties on the market.

Highlighting the popularity of the investment in the private rental sector, Knight Frank’s Residential Report expects investment to reach £146 billion by 2025 – a substantial increase from £87.3 billion in 2019.

The report, which has calculated its forecast on the combined investment into purpose-built student accommodation, residential Build to Rent and senior living rental sectors, cites shifts to the ‘housing policy landscape in the UK’ and investor appetite towards portfolio diversification as the driving force behind an increase in investment.

“The growth of these sectors is mainly down to investor appetite for diversification, the granularity of occupiers that comes with individual units, demographic and tenure shifts and a housing policy landscape in the UK that is now embracing diversity of tenure.

“While there are significant differences in market drivers for each sector, there are key synergies in construction and operations, making a move across sectors even more appealing for investors,” James Mannix, Joint Head of Residential Development & Investment at Knight Frank.

Opportunities for investors

Opportunities for investors

Encouraging trends within the Build to Rent and private rental sector has allowed investors to capitalise on demand for property across various sectors.

For investors who wish to diversify their property portfolio, Experience Invest’s 2019 UK Property Investment Hotspots Guide highlights some of the most undersupplied markets, which offer investors strong growth potential and the opportunity to secure reliable rental returns.

One location which is currently providing exciting growth opportunities is London’s commuter belt, with developments in Luton emerging as the strongest contender for investment.

Housebuilding in Luton is currently 22 years behind the required rate of demand. This undersupply coupled with a 95% increase in the number of people living in private rental sector property in the town between 2001-2011, has created a high demand for Build to Rent developments.

What’s more, 60% of properties within the private sector are concentrated in Luton’s town centre, making the location a prime target for developers.

Build to Rent Investment Designed for Success

Investors who wish to capitalise on this buoyant property market may be interested in learning about buy-to-let apartments within Imperial Square.

With a generous 10% early investor discount currently available and a 6% forecast rental return upon completion, Imperial Square Luton is an ideal choice for investors who wish to generate an income from a fully managed property development.

Imperial Square is a perfect example of how investment in the UK’s Build to Rent sector is beneficial for tenants. The development itself comprises spacious one-and two-bedroom apartments and features a selection of highly desirable on-site facilities including a cinema room, a club lounge which is ideal for a workspace, a private dining room, a concierge and landscaped podium gardens.

The development’s ground floor will be occupied by three commercial spaces which have been earmarked for a gym, a convenience store and a coffee shop.

The development has been designed with end-users and investors in mind and will emerge as a highly sought-after address for tenants.

For more information about Imperial Square Luton, or investing in Build to Rent property, simply follow the link to request further details.

About Experience Invest

As a leading UK property consultancy, Experience Invest often provides thoughtful insights into market trends.

Recently the Experience Invest team has spoken to leading publications about the impact of Brexit on the construction industry and the Build to Rent sector.

Speaking to Housebuilder and Developer, Jerald Solis of Experience Invest highlighted the need for continued investment in housing and infrastructure. Despite the uncertainty surrounding Brexit, Mr Solis emphasised the demand for property remains strong, with investors and housebuilders focusing on the long-term requirements of the market, rather than the short-term uncertainty surrounding Brexit.