Institutional investors are buying bundles of UK homes at large discounts, with 12 per cent of London properties sold in bulk deals in the year to June 30, up from 7 per cent a year earlier, according to CBRE analysis of Molior data.

Deals involve forward‑funding or purchasing built homes, giving builders cash while investors secure cheaper rental stock. Discounts now range from 15–20 per cent, up from single digits. Notable transactions include Long Harbour forward‑funding 175 homes in the East Midlands from Bellway, and a Kennedy Wilson‑CPP joint venture completing several deals.

Housebuilders face higher costs, the Iran war and rising mortgage rates, prompting deeper discounts; Taylor Wimpey and Crest Nicholson report “deep discounts” and reliance on bulk sales. Institutional holdings remain modest at 2.7 per cent of the private rental sector (Savills). Investors like Greykite and Moorfield see the market “pretty compelling” and are targeting portfolios of £10‑£40 mn in London where private sales are sluggish.