Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Majority of Property Investors Plan Build to Rent Investment
A new report from Handelsbanken reveals that 71% of professional property investors intend to invest in Build to Rent (BTR) developments. The findings come despite a sharp fall in the number of new BTR homes starting construction.
Handelsbanken’s fifth annual Property Investor Report also shows that almost two thirds (63%) of investors plan to increase their exposure to houses over the next 12 months. Additionally, 59% intend to increase their exposure to flats, 48% to Houses in Multiple Occupation (HMOs), and 44% to student housing.
The research suggests that professional investors are broadening their approach to the rental market, combining established forms of residential property with purpose-built rental developments and shared accommodation. Among those planning to increase their overall property holdings, 58% cite strong rental demand as a key reason for expansion.
Handelsbanken notes that the level of interest in BTR indicates that purpose-built rental housing is becoming a more significant part of investors’ strategies. However, traditional houses remain a major focus, with houses being the most widely favoured residential sector for increased exposure in the report.
The report highlights substantial demand for different types of rental accommodation, with nearly six in ten investors planning to increase their exposure to flats and close to half intending to expand their holdings in HMOs. Student housing is also attracting attention, with 44% of investors planning to increase their exposure in the next year.
Handelsbanken states that these findings suggest professional investors are positioning themselves across various segments of the rental market, reflecting a shift away from reliance on a single property model.
For UK letting agents and inventory clerks, these trends indicate a growing diversity in the types of rental properties being added to portfolios, which may impact demand for management and inventory services across a wider range of property types.
Source: Mortgage Strategy