Strong fundamentals in a rental market with chronic undersupply are attracting a growing amount of institutional capital, says Knight Frank.
Over £1.4bn of deals were completed in the last three months of 2021 across the UK Build To Rent sector, taking year-end investment volumes to a record £4.3bn pound sterling.
Annual spending increased by 19% compared to 2020, the previous peak year. Transaction volumes also increased by almost a third year-on-year.
The agency says: “We expect rental values to increase by 17.1% over the next five years in the UK as the rental market is supported by these strong fundamentals.
“The equivalent figure is 22.7% in central London and 19.3% in outskirts of London.”
Underscoring the strength of demand, the number of international corporate relocation requests received by Knight Frank from potential tenants in March reached its highest level since August 2019.
“Demand is hard to meet at the moment and will only grow as summer approaches,” says John Humphris, Knight Frank’s manager of relocation and corporate services.
“If you own a good property right now, chances are it will be rented out before it even hits the market.”
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