Some £3.5 billion of investment was positioned within the rising Build To Rent sector in 2020, regardless of considerations over the pandemic and future patterns of renting.
By the top of the yr the entire BTR pipeline stood at 126,085 models, a 17 per cent enhance on late 2019.
The figures come from property consultancy Colliers, which says that total UK residential investment volumes Iin BTR and different property investment) in 2020 hit £6.1 billion, matching 2018’s all-time excessive.
Around 40 per cent of that total investment was focused at London developments.
Andrew White, head of residential at Colliers, says: “UK residential property is a strong investment possibility within the UK, notably within the burgeoning Build To Rent sector as there’s a good storm of a scarcity of housing, and an enormous affordability hole, particularly for many who need to work and dwell in London.
“Over the final yr the sector has grown 20 per cent and goes to proceed to develop to satisfy the nation’s housing wants.
“In addition to BTR our cities, and specifically London, will at all times be engaging to abroad traders. Despite Brexit the UK continues to be a gateway location to Europe and America, offering entry to a safe monetary market and one other foreign money to capitalise on.”
Colliers says that in addition to investment properties, shopper residential gross sales carried out nicely final yr.
Although the primary UK lockdown prevented bodily property viewings from going down, the Chancellor’s announcement of a stamp obligation vacation final summer time helped to capitalise on the pent-up demand which appeared as soon as restrictions had been lifted.
In This autumn 2020 transaction figures reached 351,000, the second highest quarterly determine for the reason that international monetary disaster; additionally throughout This autumn 2020 there have been 307,000 mortgage approvals, with a mean mortgage dimension of £211,119.
Oliver Kolodseike, deputy chief economist at Colliers says: “It’s no shock that the stamp obligation vacation has resulted in a rush in house shopping for because the upfront prices change into extra obtainable. With affordability ratios persevering with to deteriorate as home value development outperforms earnings development, home shopping for is as troublesome as ever, notably within the south east, and any assist introduced in by the federal government is welcomed.
“The extension of the stamp obligation vacation, albeit with staggered will increase, till October is prone to imply that this degree of exercise will likely be sustained by way of most of 2021.
“It can be serving to the purchase to let landlords to develop their portfolios once more. The final time residential exercise reached these form of ranges was earlier than the extra three per cent levy for second properties was launched in April 2016.”
