London’s residential real estate market is at a crossroads. Housing starts in the capital are at their lowest level since 1981 amid higher viability hurdles, while demand for rental property is surging as inflation and higher borrowing costs are preventing would-be first-time buyers from stepping onto the property ladder. Meanwhile, tax and regulatory changes are pushing private landlords out of the sector.
For institutional investors, this confluence of factors is creating a rare window of opportunity in the build-to-rent (BTR) sector, which stands out as a strong long-term performer in an otherwise turbulent UK property market.
The United Kingdom’s real estate landscape has shifted dramatically in recent years. While office and retail sectors have struggled with structural changes, mainly via the tech-driven innovations of remote working and ecommerce, residential and logistics have emerged as consistent performers. Despite tough macroeconomic conditions, average
