February 14, 2018 | less than a minute read

Institutional investors earmark more than £8bn for UK housing market

Maples Teesdale

This shows where the UK real estate market is going over the next 10 years and there is a big opportunity for developers to work with local authorities/social housing providers to regenerate the urban landscape through residential led projects, in the knowledge that funding will be available. Developers and the public sector can both benefit from innovative uses of the public sector covenant.

Most institutional investors active in the UK’s housing market plan to increase their exposure, with more than £8bn (€9bn) earmarked for the sector over the next 12 months, according to the Investment Property Forum (IPF). The IPF’s latest survey on residential market shows that 80% of institutional residential investors plan to increase investments this year, up from 60% 12 months ago. Three non-residential investors are considering entering the sector in the next 12 months, it found. The majority of capital will be chanelled through development land (£4.4bn) and the purchase of existing – and newly completed – assets for private rent (£3.2bn), it found. IPE Real Assets has reported on institutional capital moving into the private-rented sector (PRS) in the UK in recent years, as domestic and foreign pension funds flock to the burgeoning market.