Q1 2023 UK Living Capital Markets Update

Following a record-breaking year, investment in UK build-to-rent, student and healthcare totalled £2.1bn in the first quarter of 2023 – down 48% on the same period in 2022.

BTR was the standout sector, with investors completing £1.5bn in deals in the quarter. Despite a 6% decline on Q1 2022, investment was 14% above the five-year average and funded 2,820 new homes across the UK. For the first time, more than half of these were single-family homes as investors sought out assets with less exposure to the high cost of debt and construction.

By contrast, student had its quietest quarter since 2010, while healthcare similarly experienced a lull. This report explores these sectors at a time the market anticipates a resurgence in activity.