Watkin Jones has issued a trading update, which, while highlighting strong medium-term opportunities in build-to-rent and student accommodation, concedes that market activity through the summer has been slower than anticipated, impacting transaction closures, largely due to uncertainty over the pace of interest rate cuts. The group has, therefore, reduced guidance for FY24E, but with significantly stronger than expected cashflow. However, the growing shortage of rental and student properties, in our view, should support a marked increase in opportunities once rates fall further.