2022-12-01-莱坊-Multihousing_2022_23_12页_1mb

UK Build-to-Rent Market Summary - 2022/23

Investment Activity

• BTR investment reached £3.2 billion in Q1-Q3 2022, a 10.2% YoY increase, supported by resilience during macroeconomic challenges.
• Regulatory and legislative changes may pressure landlords, accelerating exits from the buy-to-let market.
• Total BTR sector value estimated at £56 billion in 2022 (up 60% from £35 billion in 2019), with potential growth to £102 billion by 2028.

Rental Performance

• BTR rents exhibit strong, resilient, and counter-cyclical performance, rising by 21% over the last decade and growing by 3.4% annually since 2015.
• Recent supply constraints, high tenant demand, and limited units contribute to continued high growth.
• London and city centers experience stronger demand compared with other regions.

Supply Dynamics

• UK BTR completions andpipeline units increased significantly: over 72,000 completed units and ~190,000 in pipeline/supply.
• Focus on demand-side fundamentals (e.g., population growth, job availability, young households) is key to identifying high-potential locations.
• Primary BTR locations include established cities like London, Birmingham, Manchester, but also smaller cities such as Cambridge and Norwich showing growth potential.

Outlook

• Investment and activity may face a slowdown in the latter half of 2022 due to rising financing costs and economic pressures.
• However, resilience demonstrated through past crises, strong long-term fundamentals, and increasing supply sustain competitiveness.

Note: The summary covers key points from the sections Investment, Rental Performance, and Supply, with an outlook section added for completeness.