According to the latest Savills Build-to-Rent Market Report, the UK saw £4.5 billion worth of investment in 2023. This was the second-highest investment total for a single year, falling slightly short of 2022’s total of £4.6 billion.
Interestingly, Single Family Housing (SFH) accounted for over 40% of the investment share, reaching £1.9 billion. In comparison, SFH only accounted for 8% of all investments in 2022.
Elevated mortgage rates, a decrease in developer properties, and the conclusion of the Help to Buy scheme have led to robust rental demand. The report proposes that, for the government to achieve its annual target of 300,000 homes, it must ensure the delivery of 60,000 houses for private rent every year.
Guy Whittaker, Head of UK Build to Rent Research, Savills, comments: “Despite the macro-economic challenges – the elevated cost of debt and continued material and labour-cost inflation – the sector has proven resilient.
“The BtR market has seen continued growth due to the housing supply and demand imbalance and high levels of rental growth. This has led to inflation-matching returns while yields have proven comparatively strong.”
Discover More: Check out our guides on safe investments in the UK and buying investment property for more property market insights.