We are pleased to share with you the latest edition of our quarterly report, which takes a closer look at the current landscape of the UK Build to Rent (BTR) market.
As we pass the midpoint of 2023, we analyse rental performance across the UK, renters affordability, and take a deep dive into supply and demand dynamics. Additionally, we analyse residential investment performance, the effects of the rising cost of debt, and how single family housing has boosted this quarter's investment volumes.
Key Takeaways:
- UK (excl. London) Renters spend an average of 30.4% of their gross income on rent a month, an increase from 29.5% the same time last year;
- Average monthly mortgage payments in the UK are 17% more expensive than rents, and in London they are 29% greater;
- There are now 82,505 complete BTR units, up 9% from last year;
- However, there has been a slowdown in BTR construction in the regions, 33,882 starts in Q1 2023 vs 34,267 in Q4 2022.
- London BTR construction starts are down from their peak in Q3 2019.
- In Q2 2023, £0.8bn was invested, down from £0.9bn the same time last year;
- Single Family Housing accounted for 47% of investment in Q2 2023;
- In the year to May 2023, the MSCI monthly index shows residential being the only sector with a positive total return of 4.6%.
