UK Real Estate View - BTR Rent Projections 2020-24

The report projects a rebound and recovery in UK BTR rental growth post-COVID-19, with growth expected to outpace CPI inflation over a 5-year horizon.

(Generated with the help of GPT-4)

Quick Facts
Report location: source
Language: English
Publisher: Legal & General Investment Management
Publication date: November 12, 2020
Authors: Michael Adefuye
Time horizon: 2024
Geographic focus: United Kingdom, London
Page count: 6

Methods

The research method involved analyzing rental indices from ONS, Countrywide, and Homelet, and considering LGIM's ā€œUā€ shaped economic recovery scenario. Historical rental market resilience post-economic downturns was also examined.

(Generated with the help of GPT-4)

Key Insights

The report analyzes the UK Build to Rent (BTR) sector's rental growth projections from 2020 to 2024, considering the impact of the COVID-19 pandemic. It suggests that while the pandemic will cause a short-term shock to rental growth, the sector will experience a rebound and steady recovery over the next five years. The report bases its projections on a ā€œUā€ shaped economic recovery scenario, predicting a severe fall in global GDP in 2020 followed by a partial recovery in 2021. Key takeaways include a base case projection of 1.8% per annum rental growth in London and 1.7% in the rest of the UK, outpacing CPI inflation projections. The report also discusses the resilience of the rental sector in past economic downturns, the potential impact of COVID-19 on rental supply and demand, and the structural changes that may influence the sector's future.

(Generated with the help of GPT-4)

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Last modified: 2024/03/25 18:14 by elizabethherfel