U.K. BTR investment volumes down but pipeline remains healthy

Investment volumes in the United Kingdom’s build-to-rent (BTR) sector were down 68 percent year-on-year in third quarter 2023, from just over £1.04 billion (€1.2 billion/$1.26 billion) in third quarter 2022 to £323 million (€373 million/$391 million) in third quarter 2023, according to provisional data from global real estate adviser CBRE.

While investment levels in BTR were robust in the first half of the year, exceeding the long-term average, investment fell by 67 percent in third quarter from the £986m (€tk million/$tk million) recorded in second quarter 2023.

Despite the relatively low level of activity, CBRE’s data reveals there is presently £2.3 billion (€2.66 billion/$2.79 billion) under offer.

“We’ve seen subdued levels of transactions over the summer, and there has been a movement in yields, which was inevitable given the current environment of rising interest rates and the cost of debt. However, the sector remains resilient — unde