Build-to-rent investment deals worth £1.7b were made in the UK in the first quarter of 2022 according to consultancy firm, JLL.
Housing Today reported that: “Investors ploughed more than 50% extra into built-to-rent schemes in the first quarter of this year compared to the same period last year, according to consultancy firm JLL. “In the first quarter of 2022 funders invested £1.7bn in built-to-rent schemes compared to £1.1bn in the same period in 2021, JLL said.” Growth of the BTR sector as the average age of first-time buyers risesBack in 2020, Advantage looked at the growth of the build-to-rent sector despite the challenges posed by the pandemic. At the time, we wrote:
And at a time when potential buyers face new sources of uncertainty (including the impact of rising inflation, interest rates and energy bills), the average age of a first-time buyer in the UK has now risen to 32, according to Halifax. Rent set to be cheaper than a mortgage in the coming monthsBuild-to-rent properties may also become more attractive to those who’ve been considering buying a house in the coming months, as rental payments are set to be lower than mortgage payments for the first time in two decades. Your Money reported that:
‘As house price growth cools, demand for rental properties will be strengthened’In its UK housing market update, Capital Economics noted that some prospective first-time buyers may choose to rent for a bit longer, so as house price growth cools, demand for rental properties will be strengthened. For the time being, UK house prices are at a record high, with Russell Galley, Halifax’s managing director, who was quoted in the Guardian this week, saying:
However, Halifax said the cost of living crisis – with households squeezed by rising energy and food bills – was likely to dampen the increase in house prices over the coming year. Do you require a structural warranty for your project? The Advantage team is proud to work with clients on developments throughout the UK to ensure that projects are covered by the appropriate structural warranty. To find out more, call: 0845 900 3969 or email: sales@ahci.co.uk |