2022-10-27-莱坊-UK_Residential_Investment_–_Yield_Guide_October_2022_2页_133kb

Residential Investment Yield Guide Summary

October 2022

Overview

This guide analyzes residential investment yields as of October 2022, highlighting a weakening market sentiment across key sectors. Yields are reported on a Net Initial Yield (NIY) basis and reflect prime, institutional-grade assets. Overall, investment volumes varied, with student, build-to-rent, and seniors housing sectors showing fluctuating activity between 2020 and 2022.

Key Findings

• Market Sentiment: Designated as "WEAKER" in October 2022 compared to previous quarters, indicating a declining trend in yields across most sectors.
• Yield Changes: Most yields remained stable or decreased, with minor increases in select areas by October. For example:
  • Student property yields weakened, with prime London and regional areas showing no significant growth.
  • Co-living and build-to-rent sectors also experienced weakening sentiment, particularly in London and regional cities.
  • Seniors housing saw stable or slightly declining yields.

Investment Volumes

Volumes are provided quarterly (2020-2022): Student property ranged from £3bn to £6bn, build-to-rent from £2bn to £6bn, and seniors housing consistently around £4-5bn, showing no clear upward trend.

Notes

Provided for indicative purposes, prepared on October 14, 2022. Yields based on income-focused transactions; disclaimer included for commercial use restrictions.