To read this full article you need to be subscribed to Institutional Real Estate Europe
To the rescue: Institutional investment into the UK private rental market is a mutually beneficial arrangement
Against a backdrop of inflationary pressures, institutional investors are looking to review and diversify their portfolio to reduce risk; blending asset classes to achieve what they believe will be the right risk-return profile for their investment goals.
For those with bricks and mortar portfolios, particularly focused on residential investments, they may well be asking, “where next?”.
These investors should be paying attention to the United Kingdom’s private rented sector — also known as PRS.
Despite a near obsession by UK policymak- ers towards homeownership, there remains, and will likely remain, considerable appetite for quality rental housing in the United Kingdom for those on average incomes. And not everyone in this group can, or wants, to buy. There will be those who do not qualify for social housing, but cannot afford to buy. With mortgage rates on the rise, this group is likely to grow. Others will choose rental because they want fle