A total of £1.1bn was invested into the UK residential sector in the first quarter of 2023, according to CBRE.
This positive momentum is expected to continue in Q2, with £2.1bn of deals currently under offer and new opportunities ready to be launched to the market.
Q1 investment was double the total for Q4 2022, which saw uncharacteristically low volumes in the aftermath of the 23 September mini-Budget.
Among this was £380m of investment into single-family housing, the highest recorded quarterly figure for this sub-sector of the market. Notable deals included PGIM Real Estate acquiring Goldman Sachs’ 918-home UK single-family home portfolio.
First-quarter investment was also boosted by the £302m forward funding of Moda Living’s 722-home BTR scheme on Great Charles Street in Birmingham (pictured).
Jason Hardman, head of residential valuation and advisory services at CBRE, said: “The living sectors remain favourable to investors, and in spite of economic headwinds we are seeing liquidity from lenders and an appetite to sponsor residential investment assets, which has provided confidence to the market.
“The level of investment transactions in Q1, together with continued occupational strength, has helped to stabilise yield sentiment.”
Separately, BNP Paribas Real Estate said it tracked £1.1bn of investment into UK BTR in Q1, with 75-80% allocated outside London in cities such as Manchester and Birmingham and in single-family housing in suburban areas.
To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @AkankshaEG
