Investors Pile Into U.K. Rental Homes as Covid Hits Young Buyers
- Knight Frank says lockdown hasn’t driven down rent collection
- Number of households renting privately has swelled since 2001
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Investors are pouring record amounts of cash into new U.K. rental homes, betting that demand will remain high as the pandemic batters the economy and puts ownership out of reach for more first-time buyers.
Investment in purpose-built rental apartments and houses will hit 4 billion pounds ($5.2 billion) this year, up from 2.8 billion pounds in 2019, according to a report from broker Knight Frank and residential property review site HomeViews. The market has so far proven resilient to the Covid-19 downturn, with rent collection averaging 95% in the period from March through August, according to the report.