There is more than £600m of under-offer PRS stock, according to CBRE’s latest PRS yield research, which is supporting investment and further driving down yields as interest in the sector grows.
Alongside stock under offer, the agent said there had been £450m invested since March across a broad range of structures.
It pointed to land deals by L&G in Leeds and Greystar in Nine Elms, south London, portfolio deals between Westrock and Invesco, new REITs in the form of Sigma and forward-funding deals by L&G and Notting Hill Housing.
Jason Hardman, executive director and head of residential valuation at CBRE, said: “It reflects the very broad nature of the investment market at the moment. These transactions take a long time to come through, and there are still significant transactions currently under offer… both in London and outside London.”
“Unfortunately there’s not one structure that fits all – you see a vast range of structures. To some extent, purchasers and investors are starting from point zero… I think we are still going to see a big spread of different kinds of participation in the sector.”
CBRE said positive sentiment remains intact and there is also a weight of international capital looking to enter the sector.
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