Tuesday, November 5, 2024

Thousands of rental homes hoovered up by US giant in bet on Britain’s housing shortage

Must read

The first homes will be completed by the end of June this year, with the majority finished within the next two years.

Blackstone manages more than $1 trillion in assets and is the world’s largest alternative asset manager. 

Single-family homes are the fastest-growing part of Britain’s build-to-rent sector in terms of investment. 

While investment in build-to-rent flats roughly halved between 2021 and 2023, shrinking from £4.6bn to £2.6bn, investment in single-family homes nearly doubled from £1.1bn to £2bn, according to analysis by JLL property consultants.

In the first three months of this year, single-family homes accounted for the largest share of investment in the build-to-rent sector. 

Investors piled £620m into build-to-rent family homes, £170m more than they spent on build-to-rent flats.

The single-family build-to-rent sector is expanding at a time when overall housebuilding has slumped, as high mortgage rates squeeze demand.

In the last three months of 2023, the number of starts on new homes slumped by 51pc year-on-year to 19,080, government data showed.

Greg Fitzgerald, chief executive at Vistry Group said: “By working in partnership with organisations like Leaf Living we can maximise the number of high-quality homes we deliver every year.  

“This year we are on track to deliver more than a 10pc increase in new home completions, playing a key part in helping to address the UK’s acute housing shortage.”

Latest article