United Kingdom Residential Investment Marketview Q4 2021

Investment rebounded strongly in Q4 2021 to total £4.8bn. Of this £2.4bn was Build-to-Rent (BtR) and £1.8bn was Purpose-Built Student Accommodation (PBSA). This takes total residential investment in 2021 to £10.1bn.

Investment volumes in Q4 were boosted by the completion of several large PBSA portfolio deals.  Demand across the residential spectrum is strong, and there is a high under offer pipeline as we start 2022.

We are continuing to see yield compression in certain markets across the residential sectors. This is being driven by the weight of capital in the market and highly competitive bidding.

As appetite for the sector remains strong, we are currently forecasting residential investment to increase by 25% in 2022.