Here are some of the brief outline in CBRE’s latest residential investment report (download full version below):

Residential investment demand is undergoing a slowdown, exacerbated by the credit crunch. Demand is likely to remain weak until both the housing and credit markets stabilise. In the interim, we expect equity-driven buyers to fill some of this void.

Our Prime Central London Residential Yield Index shows that during 2007 yields declined from 3.8% to 3.6% by the third quarter. However, and reflecting a combination of slowing house prices and rising rental returns, the Index had climbed back to 3.9% by the year’s end.

Build-to-let represents an opportunity to draw institutional investors into the sector. As large, discrete private rental blocks, they represent a product that should be attractive to professional landlords. We are encouraged that planners are recognising this opportunity. However, we are concerned that there are insufficient market-oriented solutions to generate interest.

UK Residential Investment Report 2008 PDF