The total figure of institutional investments into the UK’s multifamily housing market throughout the first half of 2019 has grown by 20% in comparison to the same period of 2018.

UK company CBRE submitted a Residential Investment Market View for the second quarter of 2019 which revealed a £359.4 million of institutional investment that has flooded in to the UK private rental sector during Q2. The capital of England accounts for two-thirds of this figure, with a total of £232.6m in transactions and the prime regional city centres brought in an extra £119.5 million in Q2. In addition to this, there were over £500 million in transactions underway heading into Q3.

Kate Brennan, the director of valuation and advisory services at CBRE, said: “Since the strong start to the year, the second quarter of 2019 has seen some adjustment, but there was a good showing for the first half of 2019 overall, with yields remaining stable across the board.”

Ms Brennan continues, “Investors are now looking for ways in which to diversify their portfolios, whether by geography, seeking to invest in new markets or by the type of deal. We may now have reached a point where land prices are reaching viable levels from a build-to-rent perspective.”

Multifamily housing can cater to a diverse range of people, despite the familial connotations within the label. These affordable homes are also recognised for providing accommodation for young students with disposable income and older people who are noticing the convenience of multi-family living.

The demand for rental property in the UK is growing rapidly and studies have shown that new renters will soon overtake new homeowners, as when millennials reach their prime house-buying time in 2030, only a staggering 38% of them will actually own their own home. In comparison to the 46% of baby-boomers who owned a property in the 1990s, it is evident that multi-family housing is now on the rise as the most suitable option for those looking for a foot on the property ladder.