2021-12-03-莱坊-UK_Residential_Investment_–_Yield_Guide_Q3_2021_2页_75kb

Residential Investment Yield Guide: Q3 2021 Summary

This report provides an indicative overview of residential property yields in the UK residential market for Q3 2021, highlighting key trends and sentiment across different asset classes and geographic locations.

Market Overview

• The data reflects Net Initial Yields (NIY) for prime, income-focused institutional-grade assets assuming a rack-rented property.
• The yields are indicative and provided for informational purposes only, with no guarantee of accuracy.

Sector Breakdown

1. STUDENT PROPERTY

• Prime London - Direct Let: Stable, yielding between 3.75%-4.00%, with a generally positive sentiment.
• Prime Regional - Direct Let: Stable, at 5.00%-5.25%, holding a positive sentiment.
• Prime (Long-Term Student leases): Both London and Regional properties maintain stable yields (3.50% London, 3.75% Regional) with a stable sentiment.

2. CO-LIVING

• Prime London: Stable yields in the range of 4.00%-4.25%.
• Prime Regional: Stable yields from 4.75%-5.00%.
• Single Family Housing (Co-Living): Positive sentiment, with yields rising slightly in the South East but remaining generally stable in regional areas.

3. BUILD TO RENT (BTR)

• London & South East:
  • Zone 1 Prime: Stable, ranging from 3.00%-3.25%. The sentiment is stable, but some downward pressure is noted.
  • Zone 2 Prime: Stable yield from 3.25%-3.75%. No major change in sentiment.
  • Zones 3-4 Prime: Positive sentiment, with 3.50% yields showing a slight upward trend.
  • Greater London Prime: Stable, ranging from 3.50%-4.00%.
  • South East Prime: Positive, ranging from 3.75%-4.25%.
• Regional Cities:
  • Tier 1 (e.g., Birmingham, Manchester): Stable, typically below 4.25%.
  • Tier 2 (e.g., Leeds, Newcastle): Stable, yields from 4.25%-5.00%, with slight decreases noted in some periods.

4. General Notes

• Market Sentiment: Overall sentiment is stable or positive in most regions and asset classes.
• Report Disclaimers: This is an indicative report; actual yields can vary based on property conditions, transaction specifics, and market conditions. Legal terms require review for usage restrictions.

Key Takeaways

• Stable yields are dominant in most categories, particularly in London prime and some regional areas.
• Positive sentiment is noted in several co-living and BTR segments (especially Tier 2 regional cities and South East).
• Some downward pressure is seen in Zone 1 BTR in London and Greater London prime yields.

The data emphasizes the resilience and stability in the UK residential investment market but highlights regional and asset type variations in terms of yield and sentiment.