Around 71% of property investors are planning to invest in Build to Rent, according to Handelsbanken's fifth annual Property Investor Report. This comes despite a notable decrease in the number of new Build to Rent developments starting construction.
The report, which surveyed 200 real estate investors, property management professionals, and landlords, also found that almost two-thirds (63%) intend to increase their investment in houses over the next year. Additionally, 59% plan to invest more in flats, and 48% expect to expand their holdings in Houses in Multiple Occupation (HMOs).
James Sproule, the bank's chief economist, noted that strong rental demand is a key factor driving investment. He suggested that investors are carefully considering where rental demand originates and which property types are best suited to meet it. Among those planning to increase their overall property holdings, 58% cited strong rent demand as a reason for expansion.
Student housing is also attracting investor interest, with 44% intending to increase their exposure in this sector during the coming year. The research highlighted that understanding local demand and selecting the appropriate property type remains crucial for investors, as rental market opportunities can vary significantly by location.