Reading and Oxford feature in the top five locations for build-to-rent investment, according to an analysis by Lambert Smith Hampton.
Brighton and Hove followed by Oxford, Reading, Cambridge and then Bristol are the national hotspots for build-to-rent investment according to LSH analysis of the demand-side prospects of the UK’s 250 most populous towns and cities outside of London. The findings form part of a wide-ranging report into the burgeoning investment class and how it is developing.
LSH’s report – Build to Rent, Reaching out to the regions – flies the flag for institutional investors to rethink their attitude towards where the best opportunities for investment in the fledgling sector lie.
LSH writes: “While BtR has significant growth prospects outside the capital, both as a form of private rented tenure and as an investment class, the nature of the supply means that its potential is far greater in some locations than others.”
It adds that despite the narrow market for BtR in relation to the entire UK private rented sector, there is significant variation between UK locations according to demography. As such is has analysed a number of key metrics to ascertain which of the UK’s 250 most populous towns and cities outside London have the best demand-side prospects for BtR.
Locations in the South East and East regions feature prominently in the rankings, accounting for eight of the top 15. Oxford and Reading occupy second and third place respectively, with much of their performance drawn from their strong economic growth prospects, alongside affordability constraints.
Southampton is number six on the list, Slough eighth and Bournemouth ninth.