Investment into the UK’s built-to-rent sector reached £10.6bn with a further £743m of funds committed in the last quarter.
BTR investment in Q3 was more than double the previous quarter, according to CBRE.
The firm has been tracking investment in the burgeoning purpose-built sector since its inception in 2015.
The 2019 total rose to £2.1bn, a small decline on £2.2bn for the first three quarters of 2018.
Prime yields were unchanged, ranging from 3.25% in London zone 2 to 4.25% in prime regional locations.
Forward funding, which accounts for the bulk of activity, totalled £630m. This spend was split between London and the regional cities.
Major deals included Mitsubishi Estate’s forward funding of Galliard’s £150m Nine Elms site, Redrow’s £119.5m sale to Realstar at Colindale Gardens and Invesco’s £84m Birmingham debut at Holloway Head.
Helen Gray, senior director for multifamily consultancy at CBRE, said: “Investors are attracted to the secure, long-term income profile and the diversification play of multifamily housing, all of which is all underpinned by the strong supply and demand fundamentals of the UK housing market.
“The transactions in Q3 illustrate investors are continuing to focus on London and regional cities, which is closely aligned to where the renter demand is.”
CBRE identified £650m of BTR transactions under offer, with half located in prime regional centres.
Two-thirds of the investment, £445m, is through forward funding deals, with a further £82.8m in forward commitments, and the remaining in land (£68.5m) and standing stock acquisitions (£53m).
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