Build-to-Rent sector predicted to have record year in 2022

The Build-to-Rent (BtR) sector achieved its highest level of investment in Q3 2022 according to investment consultancy Knight Frank’s quarterly report on deals across the industry – the highest level of investment the BtR sector has seen in over two years.

According to the latest quarterly report from investment consultancy Knight Frank, the Build-to-Rent sector is set to have a record year this year after investment into the sector reached its highest level in over two years throughout Q3 2022, with £1.435bn reportedly put into the sector during this period. The last time the BtR sector recorded an investment level as high as this was in Q3 2020 when it reached just below £1.9bn.

Throughout 2022 the BtR sector has seen a total investment figure of £3.15bn so far, however, with many significant deals expected to exchange in Q4 2022, the sector is now expected to be on track for a record year this year.

Compared to the previous year, the BtR sector has seen a 10% increase in investment throughout 2022, equating to a £2.895bn increase over the three quarters.

“These latest investment volumes demonstrate investor confidence in the sector’s key fundamentals – it is a robust asset class that outperforms in periods of economic uncertainty. While there are clearly market headwinds that will need careful navigation, investors can be confident that the sector remains attractive, with strong current and forecast rental growth prospects. As mortgage costs rise and buy-to-let rental stock declines, we will see demand for high-quality, professionally managed Build to Rent products continue to increase, providing investors with a resilient and appreciating income stream for years to come.” Nick Pleydell-Bouverie, Knight Frank.

With the number of households looking to rent in the UK up from 3.6 million in 2010 to 4.4 million in 2021, a growing population, and more young people choosing to rent for the flexibility and social experience, it is no surprise to see that the BtR sector is now predicted to have a record level of investment in 2022, as demand continues to outstrip supply throughout the market across the country.

To learn more about how you can capitalise on the demand for BtR accommodation in the UK, get in touch with one of our expert property consultants today.