Grainger’s Helen Gordon discusses why housing has HALO for investors

Helen Gordon is chief executive of Grainger

But that focus has also created concentration risk and stretched valuations, and now we are seeing a shift, especially among mid‑ to large‑cap software companies.

There are signs that capital is rotating away from a narrow group of asset-light tech stocks and back towards Europe, real assets and long-term income. This is not a short-term wobble. It reflects a deeper reassessment by investors of where resilience, durability and future value sit.

Why does this matter for housing? Because investors are looking for assets that generate dependable cashflows, cannot be digitised or disrupted overnight and serve a human need. Homes, including professionally managed build-to-rent (BTR) housing, meet all three of these criteria.

At the same time, capital is flowing out of the US and into Europe, driven by valuation gaps, policy uncertainty and a desire for diversification. The UK should be very well placed to benefit from this shift: we have a deep need for housing, a mature rental market and a well-established REIT regime offering transparency and strong governance. Yet, we are not capturing this opportunity as effectively as we could.

An emerging investment theme from the rotation out of tech is what some have called the ‘HALO’ trade: hard assets with low obsolescence. These are assets with long lives, high barriers to entry and enduring relevance. Infrastructure, logistics and energy feature prominently; so should housing.

BTR, in particular, is a natural fit. Demand is structural, not cyclical, homes do not become obsolete and professionally managed portfolios allow for long-term investment in quality, operational efficiency and sustainability. For global capital seeking exposure to real assets in Europe, UK BTR should be an obvious destination.

Turn back: capital is moving away from the ‘magnificent seven’ asset-light tech companies

Despite solid operational performance and strong long-term fundamentals, many UK REITs continue to trade at significant discounts to underlying asset value.

When share prices sit well below net asset value, raising new equity is challenging, constraining growth, limiting investment and restricting the delivery of new homes.

This is not just an issue for listed property companies or their shareholders. It has much wider implications. A well-functioning stock market is not an abstract City concern; it is fundamental to our ability to fund infrastructure, including homes. If we want institutional capital to support housing delivery, we need public equity markets that reward patient, long-term investment. Listed REITs are one of the most effective ways to channel that capital into housing. They provide liquidity, transparency and access for pension funds and retail investors alike.

But long-term capital requires policy stability and a clear and consistent approach to housing regulation. And it means recognising that REITs are not short-term trading vehicles, but long-term stewards of essential assets. The global backdrop is shifting in the UK’s favour. Capital is looking for exactly the kind of assets that housing provides.

BTR remains a small part of the overall rental market, but it is growing because it works – for residents, cities and investors. With the right market environment, it can play a far bigger role in helping to meet the UK’s housing needs.

The opportunity is clear. Global capital is rotating back to bricks and mortar. Ensuring the UK can benefit from that will require a strong partnership between government, capital markets and industry. If we get that right, we can unlock investment, improve housing supply and strengthen the UK’s position as a place to invest for the long term.

Helen Gordon is chief executive of Grainger