Political uncertainty spread its tendrils through most industry sectors in 2019, including the seemingly unstoppable Build-to-Rent market. The last 12 months saw a 22% drop in investment, according to research from CBRE. The consultant reports that transactions for the second half of 2019 were subdued compared to the last two quarters of 2018. CBRE puts this down to market uncertainty around the General Election but there is no doubt that the markets have picked up since then.
Looking to the year ahead James Hinde, the director of valuation and advisory services at CBRE is optimistic. He says the outlook for 2020 is “favourable” with some £1.5 billion worth of deals currently under offer. Hinde forecasts “rapid expansion” and CBRE’s forecast is for residential investment to rise by approximately 30% this year, with demand driven by “an increasingly diverse investor base from both domestic and overseas institutions.”
This chimes with Savills analysis for the British Property Federation (BPF) which we reported in yesterday’s blog. There are now 152,071 B2R homes at various stages of completion in the UK. Of these, 40,181 of these are complete, with a further 35,415 under construction and 75,475 in planning. This represents an increase of 15% over last year.
LifebyRingley, our lettings business based in Manchester, continues to thrive, growing its management portfolio of BTR homes and witnessing rapid growth in the sector. This is borne out by the 51% surge in the number of completed rental homes in key regional cities reported by Savills, with Manchester, Birmingham, Liverpool, Leeds, Glasgow and Sheffield leading the way.
There are now more completed Build-to-Rent homes across the UK’s regions than in London, although the capital still has more homes under development.