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Investor interview: Oxford Properties’ Lee Coward on why he is optimistic about the UK’s build-to-rent sector
Oxford Properties is an offshoot of a giant Canadian pension fund serving Ontario’s public sector retirees. Head of European investments Lee Coward talks to Denise Chevin about the global investors with an appetite for UK build-to-rent – despite regulation, planning and delivery headwinds
Investor interview: Oxford Properties’ Lee Coward on why he is optimistic about the UK’s build-to-rent sector #UKhousingOxford Properties’ head of European investments Lee Coward talks to Denise Chevin about the global investors with an appetite for UK build-to-rent #UKhousingOxford Properties
- UK residential investments: over £600m of equity invested across two platforms with 6,500 multi-family homes (£3bn in value) and 4,500 single-family homes (£1.3bn in value)
A shortage of housing, and rental income that has historically risen with inflation, makes the UK residential build-to-rent market an increasingly attractive proposition for global investors such as Oxford Properties.
Despite challenges around viability, planning and regulatory complexity, head of European investments Lee Coward believes momentum is building for institutional investment in the UK’s residential sector, particularly in suburban single-family housing.
And international capital is increasingly confident in backing it.
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“We would like to invest more in the residential sector in Europe in the coming years,” Mr Coward says.
“We are looking at residential opportunities in continental Europe including Spain, Germany and France as well as in the UK. I think it’s undeniable that there is a shortage of housing in the UK, and there is a real opportunity for institutional capital to help fund the delivery of more homes across all tenures.”
Over the past seven years, Oxford has deployed nearly £100m of equity annually into funding the development of new UK housing. “I would definitely like to see more investment in 2026 than we saw in 2025,” he adds.
How Oxford’s residential platform is structured
Oxford Properties, the property arm of the Ontario Municipal Employees Retirement System, has been invested in UK residential since 2018, moving in from a North American market where institutional rental is already well developed.
“Residential is definitely a more mature institutional investment class in North America. We understood what this product could offer the UK market in terms of a better, more professionalised rental offering and it seemed logical that the same concept should work well here,” Mr Coward says.
In Europe, Oxford spreads its residential exposure across two main platforms.
It has invested in 6,500 homes as a major shareholder in Get Living, the urban build-to-rent landlord, and around 4,500 homes through Sigma Capital, a joint venture with European private equity investor PineBridge Benson Elliot.
“The benefit of these platforms is the ability to acquire, develop and operate all across the UK with a range of institutional partners, enabling a scale that we simply couldn’t achieve on our own,” Mr Coward says.
Get Living focuses on apartment blocks in cities including Greater London, Birmingham and Manchester. It was a pioneer of the build-to-rent sector in the UK and combines developer, operator and investor capabilities.
Sigma is predominantly invested in single-family housing in the North West, the Midlands and the North East, funding the construction of new homes from house builders as part of mixed-tenure communities. Sigma also has an in-house property management arm, Simple Life.
Why single-family makes sense right now
A key reason Oxford is currently more active in single-family housing is that it is commercially more viable than high-rise blocks.
“The extra regulation and processes of going through the Building Safety Regulator is a real challenge for the viability of multi-family development right now,” Mr Coward says.
“As an institutional investor, it is just easier to build single-family housing than it is to develop flats currently. But I hope that will change.”
Oxford’s platforms have no target demographic as such. “Our range of tenants is spread from students all the way up to retirees,” Mr Coward explains. “There is a combination of young couples, young families and older residents. Tenants tend to spend no more than 30% of their household income on rent.”
Oxford is also exploring co-living, flexible living and carefully selected student housing.
Overseas investors are piling in
Oxford expects other overseas investors to continue following suit. “Most of the other Canadian pension funds or fund managers are already investing in UK residential,” says Mr Coward.
Australian capital is now increasingly involved too, he notes, alongside emerging Asian pension and sovereign wealth fund interest. “Having a diversified base of international capital is really important for the sector,” he adds.
Even amid attractive gilt yields, residential investment holds strong appeal. “Most institutions want a diversified portfolio and residential is an attractive institutional investment,” Mr Coward says. “The profile is appealing as the income generally grows in line with wage growth and can be a strong match for pension liabilities.”
Overcoming challenges
While returns are attractive, making investments work is not without challenge, Mr Coward says, and unlike long-lease commercial, residential is far more hands-on.
“You’re dealing with lots of residents, building a community and ensuring they have a positive rental experience. It’s operationally intensive,” he says. “That’s why Oxford backs strong platforms and operators like Get Living and Sigma’s Simple Life platform, and will continue working with specialist partners.”
Delivery constraints persist, too: “Viability is a challenge, the Building Safety Regulator delays are a challenge, as is the planning process, particularly in urban areas.”
He welcomes government efforts to unlock investment. “I would acknowledge that the current government is trying to make changes to allow more institutional investors to deploy capital in the UK residential sector,” Mr Coward says.
He cites reform of the planning system as critical and would like to see further government-backed housing loan programmes to help make viability stack up.
Despite macroeconomic uncertainty, Mr Coward remains upbeat. “We’re long-term investors. We would like to believe we can see through near-term volatility. I have optimism about the path the UK is on.”
And while operating residential businesses is challenging everywhere, the UK remains compelling. “I doubt it’s easy to run a residential business in any country. But the UK is very appealing as an investment destination relative to lots of other opportunities in the world.”
The investor interview series
Man Group’s Shamez Alibhai on the shift to direct development
Man Group’s Community Housing Fund, which wants to double its portfolio and get involved in projects at an earlier stage. Managing director Shamez Alibhai sits down with Denise Chevin to explain why
How Octopus Capital’s Jack Burnham plans to reach 1,000 homes – then double it
After raising its first tranche of overseas investment, Octopus Capital is confident of scaling up and building more homes with zero energy bills. Denise Chevin speaks to head of affordable housing Jack Burnham to find out more
Thriving Investments’ Cath Webster sets out expansion plans
Thriving Investments, the investment manager owned by Places for People, is focusing on homes for essential workers as it scales its regional housing funds. Denise Chevin meets its chief executive, Cath Webster
Venn’s managing director Oriane Auzanneau on backing build-to-rent with government guarantees
Venn’s managing director Oriane Auzanneau tells Denise Chevin how government guarantees are reshaping housing finance and building investor confidence
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