Institutional investment into the U.K. rental market has gathered pace during the past decade, with an estimated 230,000 units completed, under construction or in planning. The majority has been focused in city centers, according to a report by Cushman & Wakefield.
About 92 percent of development has been in urban areas, but during the past few years there has been a shift, with a growing number of investors entering the single-family housing (SFH) market.
Not all renters live in city centers. The suburban renter population is huge, with nearly two-thirds of U.K. renters living in rural or suburban locations. This means the market for single-family homes is substantial, at an estimated 2.9 million households. This is only expected to grow.
Supply-and-demand dynamics, along with strong investor rationale, make a positive case for SFH investment. Investors have been quick to realize the market potential, with key U.K. and international players entering the fie