UK resi investment rises 48% in first quarter
2022-06-17
By David ParsleyMon 9 May 2022
The UK residential sector recorded a total of £2.9bn of investment during the first quarter of 2022, according to data from CBRE.
Investment was up 48% on the same period of 2021, with CBRE forecasting a 25% increase in UK residential investment for the year.
Purpose-built student accommodation (PBSA) accounted for almost half of the total investment, coming in a £1.4bn. The was the highest first quarter volume since 2015, excluding the iQ/Blackstone entity-level transaction in Q1 2020.
Build-to-rent investment activity was also strong, up 9% from the same period last year at £860m. Investment was heavily weighted towards London and the South, accounting for 77% of total deals.
CBRE data show the positive momentum is expected to continue in the second quarter, with provisional figures showing £2bn of build-to-rent deals under offer, as well as significant PBSA deals in the pipeline. The appetite for other residential sectors, including co-living and affordable housing, also remains strong, said CBRE.
Andrew Saunderson, head of UK residential capital markets at CBRE, said: “Following unprecedented levels of investment in 2021, and in the face of some headwinds including higher construction costs and inflation, investment levels for the first quarter have certainly been healthy.
“Investor appetite for residential remains strong as the sector continues to go from strength to strength.”
The UK residential sector recorded a total of £2.9bn of investment during the first quarter of 2022, according to data from CBRE.
Investment was up 48% on the same period of 2021, with CBRE forecasting a 25% increase in UK residential investment for the year.
Purpose-built student accommodation (PBSA) accounted for almost half of the total investment, coming in a £1.4bn. The was the highest first quarter volume since 2015, excluding the iQ/Blackstone entity-level transaction in Q1 2020.
Build-to-rent investment activity was also strong, up 9% from the same period last year at £860m. Investment was heavily weighted towards London and the South, accounting for 77% of total deals.
CBRE data show the positive momentum is expected to continue in the second quarter, with provisional figures showing £2bn of build-to-rent deals under offer, as well as significant PBSA deals in the pipeline. The appetite for other residential sectors, including co-living and affordable housing, also remains strong, said CBRE.
Andrew Saunderson, head of UK residential capital markets at CBRE, said: “Following unprecedented levels of investment in 2021, and in the face of some headwinds including higher construction costs and inflation, investment levels for the first quarter have certainly been healthy.
“Investor appetite for residential remains strong as the sector continues to go from strength to strength.”
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