Investment volumes in the UK’s build-to-rent sector are down by 68% year-on-year in Q3 2023.
The quarter saw £323m invested in the sector, down from £1.04bn in Q3 2022, according to, CBRE.
While investment levels in BTR were robust in the first half of the year, exceeding the long-term average, investment also fell by 67% in Q3 from the £986m recorded in Q2 2023.
Despite the relatively low level of activity, CBRE’s data reveals there is presently £2.3bn under offer.
CBRE head of living sector valuation and advisory services Jason Hardman said: “We’ve seen subdued levels of transactions over the summer and there has been a movement in yields, which was inevitable given the current environment of rising interest rates and the cost of debt.
“However, the sector remains resilient – underpinned by notable supply and demand imbalance and strong rental growth, which we expect to be further fueled by the current low levels of construction starts.
“Pricing discovery is set to continue into Q4 as a number of leased-up assets are expected to come to the market and, if interest rates stabilise, it should encourage market activity and transaction levels to rebound.”
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