Institutions pumped £3bn into UK PRS in 2018
Institutional investment in the UK private rented sector topped £3bn for the first time in 2018.
Institutions from around the world invested £3.1bn in UK PRS last year, up by 33% from 2017, according to CBRE’s UK Residential Investment Report.
The fourth quarter saw £906.6m of investment into the sector, in line with Q4 2017, though down on the previous quarter.
Institutional investment in the UK private rented sector topped £3bn for the first time in 2018.
Institutions from around the world invested £3.1bn in UK PRS last year, up by 33% from 2017, according to CBRE’s UK Residential Investment Report.
The fourth quarter saw £906.6m of investment into the sector, in line with Q4 2017, though down on the previous quarter.
PRS investment has been diversifying, particularly in prime regional centres such as Birmingham and Manchester, but London still accounts for more than half of the development pipeline.
Equity from North America, at £15.8bn, now accounts for almost half of the £33.8bn targeting the sector. Domestic equity accounts for around a quarter (£8.1bn), while Asia accounts for £5.1bn and Europe accounts for £4.8bn.
Jason Hardman, senior director at CBRE, said: “The performance of the UK’s build-to-rent market clearly illustrates the drive from investors to seek income from a secure and stable asset class. 2018 witnessed further landmark transactions, from a structuring, platform and location perspective.
“Going forward in 2019, we can only see these trends continuing and expect the volume of capital committed to grow at a faster pace.”
PRS yields are generally stable and CBRE has left its key yields unchanged between Q3 2018 and Q4 2018.
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