Can Residential Build to Rent provide a profitable low risk investment option?

Journal article


Barnett, N. and Michael, L. (2020). Can Residential Build to Rent provide a profitable low risk investment option? Journal of Management and Economic Studies. 2 (1), pp. 24-50. https://doi.org/10.26677/TR1010.2020.426
AuthorsBarnett, N. and Michael, L.
Abstract

Purpose : Recently there has been a refocusing on the yields of investment assets. Accordingly,
as risks to income yields rise, this research investigates how residential Build to Rent (BtR) may
provide an effectively diversified portfolio. Emergence of this new investment sector requires a
comparison between the rate of return of (BtR) and other asset classes. We seek to ascertain how
BtR can be used by investors to reduce risk and provide diversification benefits within a mixedasset portfolio.
Methodology:The research methodology adopted utilised secondary data produced by a
reputable research organisation, coupled with personal interviews with major participants within
the BtR sector.
Findings: Diversification of assets within an investment portfolio reduces the total risk and
volatility of an investment portfolio based upon the Markowitz (1952) Modern Portfolio Theory
(MPT) model. Analysis of BtR performance against other traditional asset classes including
traditional investment property, proved BtR a valuable inclusion, reducing risk and providing
valuable returns.
Discussion:Limited UK based research material on BtR as an investment option for institutions
(and individuals), indicates its relatively short history as an investment option. Accordingly,
some reliance was placed upon traditional private residential rental data. Despite this, the BtR
investment asset in a mixed asset portfolio proved a source of lo

Year2020
JournalJournal of Management and Economic Studies
Journal citation2 (1), pp. 24-50
ISSN2667-6125
Digital Object Identifier (DOI)https://doi.org/10.26677/TR1010.2020.426
Publication dates
Print07 Jun 2020
Publication process dates
Accepted23 Apr 2020
Deposited14 Aug 2020
Publisher's version
License
File Access Level
Open
Accepted author manuscript
License
File Access Level
Controlled
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Can Residential Build to Rent
License: CC BY-NC-ND 4.0
File access level: Open

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Effective Housing Supply: Where and What to Supply?
Gu, G. and Michael, L. (2019). Effective Housing Supply: Where and What to Supply? Journal of Management and Economic Studies. 1 (2), pp. 1-17. https://doi.org/10.26677/TR1010.2019.69