Build To Rent will be 5% of private rented sector by 2020 says agent

Funding by large-scale investors into Britain’s burgeoning Build To Rent sector is set to triple by 2020 according to Knight Frank. 

The agency estimates that total investment will rise to £50 billion over the next five years, based on responses to a survey from 16 of the most significant current investors. This will make Build To Rent worth 5.0 per cent of the total private rental sector at that time, up from the current 2.0 per cent level.

All respondents planned to equal or increase their current level of investment over the next five years, and 71 per cent said they would be holding the assets for more than 10 years.

Some respondents saw their investments being split evenly between London and regional city centre markets in five years’ time, while others were clear that their portfolios would be weighted more heavily towards the regions where higher yields are likely. 

The survey - which can be seen in full here - also provides a warning to the Scottish Government which is advocating forms of rent controls. 

The proposals have resulted in 38 per cent of institutional investors questioned by Knight Frankl saying that they would no longer consider investing in Scotland if rents were restricted - although an equal number of investors said that they would still consider investing in Scotland despite the move.