The firm cited the shrinking of rental supply and strong secular demand growth as the contributing factors for what it saw as an opportunity for an affordable “build, aggregate and scale” strategy, which Hilltop claimed was in high demand in multiple regions across the UK.
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The report, which was written by Tiger Craft, president and COO at Hilltop, went on to claim that the BTR stock which has been delivered so far has been “high amenity”, which is often unaffordable to those downsizing, with young families or single people.
Alongside the predicted BTR opportunities, Hilltop also predicted a decrease in BoE interest rates to 4.5% by year-end 2024, after interest rates fell to 4.6% in the latest ONS CPI on Wednesday.
Paul Oberschneider, CEO and founder of Hilltop Credit Partners, said: “We see affordable build-to-rent presenting a significant opportunity for both long-term equity and lenders in a challenging market.”