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Investors to increase allocation to “beds for rent” sector

real_estate_investmentThe UK’s “beds for rent” sector is set for a period of significant investment growth as investors seek to increase allocations to the rental market, according to a report by Investec.

Over 80% of investors expect to increase or maintain their portfolio allocation towards the “beds for rent” sector over the next ten years, versus just 58% for office.

The number of investors looking to commit over £1 billion to the sector over the next half decade has increased five-fold since 2019, Investec highlighted.

The UK’s retirement sector is also seen favourably, the survey of 52 investors representing a combined £500 billion in assets under management found.

Over 30% of respondents now invest in retirement living, up from 20% in 2019.

Mark Bladon, head of real estate at Investec, said: “Quite simply, the ‘beds for rent’ sectors are now core to investors’ strategies, as a combination of accelerated structural shifts, the fact that everyone needs a roof over their head and unprecedented disruption has reshaped the UK real estate market.”

The report also found that Brexit concerns have dissipated, with political uncertainty no longer seen as the biggest threat to the real estate sector’s growth falling from 72% in 2019 to 33% this year.

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