Investment in the emerging build-to-rent sector in the second quarter of 2020 fell the lowest level on record, with just £83m committed in two deals.
CBRE’s UK Residential Investment Marketview for Q2 reported a 90% drop from Q1 volumes as investors held off finalising deals during the coronavirus pandemic.
The figures are the lowest recorded since CBRE started tracking investment in 2015.
Aberdeen Standard Investments completed two forward funding deals in London, committing £36m at Aquastrada’s Stratford Office Village and the remainder at Lindhill’s development at the former Abbey Sports Centre in Barking (pictured).
However, CBRE is optimistic of a significant rebound in the second half of the year, with just over £1.4bn worth of deals under offer. This compares with £800m under offer at the end of Q1.
Pipeline deals comprise £898.2m in forward funding deals (64%), £275.5m in land deals (20%) and £143.9m in built standing stock (10%).
A trend of regional investment looks set to continue, with 51% of funds committed in prime regional centres and 9% in other regional centres, with some £840.1m committed to the regions.
In London at the start of Q3 there was £101m under offer in zones 1-2 (7%) and a further £385.8m in zones 3-6.