There is 14 times more equity targeting the UK private rented sector than there is stock, according to CBRE’s new Build to Rent Equity Barometer.
It said £27.7bn of capital is targeting the UK residential market over the next five years. A quarter of this is from domestic investors, while half comes from North America.
Peter Burns, managing director transactions, UK development and residential capital markets at CBRE, said: “In 2016 multi-family was a $250bn debt and equity market in the US. Institutional investors from overseas destinations, like North America, are looking for new markets to deploy their capital.”
CBRE said interest from international institutions had risen, and that while London has traditionally been the focus of their attention, the UK’s regional cities are becoming increasingly prominent as American funds move up the risk curve.
London previously offered the majority of rental homes, but the 70,000 pipeline either complete or under construction is now evenly split between the capital and the rest of the UK’s regions.
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