BTR and SFH Investment Soars to £1.3bn in Q4 2023

Image credits: Seb Doe / Unsplash

According to a recent report by BNP Paribas, Build to Rent (BTR) and Single-Family Housing (SFH) investment activity reached £1.3bn in Q4 2023. This surge took the total for 2023 to £4bn.

Despite facing challenges, the SFH sector dominated the market. The launch of new partnerships targeting this sector and significant transactions over the quarter contributed to this dominance. Long-term affordability issues in the housing market, coupled with higher mortgage costs and the removal of the Help to Buy scheme in 2023, left many aspiring homeowners with little choice but to rent. This situation fuelled the demand for rental homes in Q4 2023.

The SFH market's growth was propelled by several key deals. The forward funding deal of approximately 3,000 Vistry Group homes by Leaf Living and Sage Homes for £819m was a landmark event. Other notable activities included the joint venture formation between Nuveen and Apache Capital to fund the development of single-family homes across the UK and a deal between UBS and Matter Real Estate to invest in the SFH market.

In the BTR sector, the largest deals of the quarter included Greystar’s forward funding deal of Renshaw’s Yard for £141m and CDL Group’s forward funding of 1NQ in Manchester for £75.6m. These figures highlight the robust growth and dynamism in the BTR and SFH investment landscape.