|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 rises
Back 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 months
Build-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.
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