Cushman-Wakefield-Q4-2022-BTR-Report

INVESTMENT VOLUMES

INVESTMENT

BTR INVESTMENT VOLUMES ( BN ) UK

An estimated £4.01 bn was invested into Build to Rent in 2022. This is 5% below 2021 levels , at £4.21 bn . Strong investor momentum continued throughout the first three quarters of the year , with investment volumes 61% higher than the same period in 2021. Economic and political headwinds slowed investment volumes in the final quarter of 2022, with an estimated £330 million invested . 2023 is likely to see both a flight to quality assets and an openness to deal structures that were previously not considered . As the cost of living impacts renters , we anticipate a greater focus on ' affordable ' mid - market products , particularly as developers and housebuilders consider their exit options on part built stock and larger strategic land holdings .

£1.02 £1.61

£0.66 £0.89

£0.60 £1.17

£1.92 £0.33

Q 1

Q 2

Q 3

Q 4

WHAT TO WATCH IN 2023

2021 2022

Openness to deal structures that were not previously considered

£4.01 bn Invested in 2022 5% Lower than 2021

Growth in low amenity ' affordable ' Build to Rent schemes

Build to Rent investors seeking opportunity in a slower sales market

Source: Cushman & Wakefield, RCA

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Cushman & Wakefield, RCA