What is the Outlook for UK BTR Rents?
Posted by Knight Frank Newcastle on 1st December 2022 -
Investment into UK Build to Rent has been strong so far in 2022, with a significant level of capital committed in the first three quarters of the year.
Almost £3.2 billion of capital has been committed to the UK Build to Rent (BTR) sector during the first three quarters of 2022, up 10.2% year-on-year. Some £1.5 billion was spent in the third quarter alone, the second strongest quarterly investment figure on record and 60% higher than the quarterly average for the last five years.
Investors have been undeterred by a macroeconomic backdrop characterised by soaring inflation and rising interest rates, but higher financing costs since September’s ‘mini-budget’ mean we expect a slowdown in investment in the final three months of the year as some highly leveraged investors take a pause.
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