CBRE’s Multifamily Index shows market rental values and occupancy rising, while capital values fall as yields move out

Global real estate advisor, CBRE, has released the latest results of its UK Multifamily Index, showing continued growth in market rental values and occupancy during the six months to September 2026, while capital values fell as investment yields moved out.

Capital values for multifamily schemes in the index fell by 2.6% in the six months to September 2026. Combined with a net income return of 2.3%, this resulted in a total return of -0.3% over the period. Capital values also declined in the wider commercial real estate market, falling by 1.1% over the same six months according to the CBRE UK Monthly Index.

The fall in capital values was driven by an 18-basis point rise in capitalisation rates, which reached 4.75% at September 2026. Market rental value growth of 1.2% was not enough to offset this outward yield movement. Gross income rose by 2.7% over the six months, supported by a seasonal rise in occupancy. The average occupancy rate for schemes in the index was 96% at September 2026, up from 95% in March.

Regional markets recorded a slightly smaller fall in capital values than those in London, at 2.5% compared with 2.8%. Market rental value growth was also stronger outside the capital, at 1.4% compared with 0.8%. However, gross income growth was stronger in London, at 3.8% compared with 2.0% for the rest of the UK, helped by a larger increase in occupancy.