Not only has the Covid-19 lockdown led to the UK's 'beds for rent' sector becoming the clear winner for investment, but it is also still set to grow - according to one report.
The findings from Investec Real Estate are revealed in their Future Living report - 'Beds for Rent: A Golden Age'.
The firm surveyed more than 52 global institutional investors who represent £514 billion in assets under management to see how the Covid pandemic has transformed investor attitudes towards real estate.
And, according to their findings, build to rent (BTR) has become crucial to their investment plans with 60% of investors saying they are investing in the BTR sector currently.
Investors are committing more than £1 billion to BTR
The findings also highlight there has been a fivefold increase in investor numbers who are committing more than £1 billion over the next five years to BTR.
On top of that, 85% of the investors said they are expecting to maintain or increase their portfolio allocation over the next 10 years towards the beds for rent sector.
In comparison, just 58% of investors said they were allocating funds for offices.
When questioned about location, more than 80% said the most attractive areas for bed for rent opportunities are outside of London.
BTR and purpose-built student accommodation
The report also highlights that 71% of investors say that BTR should be viewed as a two-tiered sector with BTR and purpose-built student accommodation (PBSA) becoming fully established sectors versus other asset classes.
The investors say that the next sector that is most likely to establish itself in the UK is retirement living.
That's because 60% of investors see this as particularly appealing as an investment opportunity over the next five years.
Investec's head of real estate, Mark Bladon, said: "The beds for rent sector is now core to investor strategies."
Simon Thompson, the managing director of Accommodation for Students, said: "In recent years there has been a lot of investment in purpose-built student accommodation in response to growing numbers of students and the growing popularity of the higher education sector, especially from overseas students.
"There are still opportunities for landlords with one or several student homes in their portfolio but there's no doubt too that institutional investors are taking more interest in the sector."
