BTR development has rocketed in recent years as the sector’s appeal has broadened, but a number of challenges lie ahead.
In 2012, when the Montague Review set out recommendations to increase the scale of institutional investment in the private rented sector, many in the industry saw the potential of BTR but few predicted that it would take-off to the extent that it has.
“I sat on the Montague Review and had no idea just how big the BTR sector would become,” says the BPF’s director of real estate policy, Ian Fletcher. “It is surpassing all our expectations.”
Renting purpose-built space from an institutional landlord has proved a popular option for a lot of people, while investors have flooded into the market in search of secure, long-term income. According to CBRE, investment in BTR in the UK reached £2.4bn in 2017, 33% up on the previous year.
So can the sector carry on growing at the same pace and what challenges lie ahead for what is now one of the property market’s hottest asset classes?
You must be logged in to view premium stories.
Take out a print and online or online only subscription and you will get immediate access to:
To get access to premium content subscribe today
Alternatively REGISTER for a free trial to access up to 4 articles and sign up for email alerts