Professional property investors sound out Build To Rent

Professional property investors sound out Build To Rent


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A new survey suggests professional property investors are considering Build To Rent – despite the sector experiencing major issues of confidence and delivery.

Nearly three quarters (71%) of professional property investors plan to invest in Build to Rent developments, according to Handelsbanken’s latest property investor report.

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This is despite a sharp fall in the number of new BTR homes starting construction.

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Handelsbanken’s research, based on a survey of 200 real estate investors, property management professionals and landlords, points to strong appetite across the residential rental market. 

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Almost two thirds (63%) plan to increase their exposure to houses over the next 12 months, while 59% intend to increase exposure to flats and 48% to HMOs.

The findings suggest professional investors are looking at the rental market through a broader lens, combining established forms of residential property with purpose-built rental developments and shared accommodation rather than relying on a single model.

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Rental demand is helping to underpin that interest. Among investors planning to increase their overall property holdings, 58% cite strong rental demand as one of the reasons behind their expansion plans.

Build to Rent stands out within that picture, with 71% saying they plan to invest in developments in the sector. 

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While the research does not specify how investors intend to gain that exposure, the level of interest suggests purpose-built rental housing is becoming an increasingly important part of how professional investors think about residential property.

A bank spokesperson says: “Professional investors are looking across a much broader range of rental housing than the traditional buy-to-let model alone.

“Build to Rent is particularly striking in our findings, but there is also significant appetite for houses, flats and HMOs. That suggests investors are thinking carefully about where rental demand is coming from and which types of property are best placed to meet it.

“Strong rental demand remains an important part of the investment case. For professional investors, the question is increasingly not simply whether they want exposure to residential property, but which type of rental housing offers the right opportunity in a particular market.

“That is likely to mean greater variety in how investors build their portfolios, with traditional rental property sitting alongside newer and more specialised forms of housing.”

Student housing is also attracting interest, with 44% planning to increase their exposure over the next 12 months.

When taken together, the findings suggest professional investors are positioning across different parts of the rental market, from individual houses and flats through to shared accommodation, student housing and Build to Rent.

That breadth may become increasingly important as investors respond to different types of tenant demand across local markets. Houses may remain attractive in family and suburban rental markets, while flats, HMOs and purpose-built rental developments can provide exposure to different tenant groups and locations.

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