Should we build to rent?
According to Property Investor Today London is now one Europe’s hot spots for investment in building properties to rent.
Quoting research from property consultancy Jones Lang LaSalle investment in Build to Rent – also known as multifamily in Europe and America – nearly doubled in London last year to reach €2bn, up from €1.1bn in 2017.
This increased activity in London has boosted the overall Build to Rent sector in the UK to €6.8 billion, reflecting the fast-increasing investor appetite across the country for this emerging market.
Clive Scrivener, Partner at Scrivener Tibbatts comments: “Here in Wimbledon it’s also clear that we need more homes for people to move into. A mix of properties that are built to rent won’t completely end the property shortage, or bring down prices, but it would be most welcome addition to the housing stock.”
London jumped two places to become the fourth best European city for Build to Rent investment in JLL’s European Multifamily Investment Market report, putting pressure on more established city markets such as Berlin – where renting has long overshadowed home ownership.
Elsewhere in the UK London isn’t the only Build to Rent growth area, with five of the 20 cities in the JLL rankings table found in England. Manchester took the number 11 spot with investment volumes of more than €700m, followed by Leeds (12th position), Birmingham (16th position) and Brighton (17th position).
Another report recently revealed that investment in the Build to Rent sector hit a record high in 2018, eclipsing £4 billion – up from £2.4 billion in 2017. Knight Frank has previously said that around £75 billion will be committed to Build to Rent in the UK by 2025.
There are currently 142,999 Build to Rent units either completed or planned across the country, with 32,223 completed, 36,410 under construction and a further 74,366 with planning permission. In London, there are a total of 74,580 units, while outside of the capital there are 68,419 units.
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