UK residential investment: Living Sectors performing and planning reforming
Living sectors counter-cyclical demand offers shelter from the storm, whilst future of planning reform remains uncertain.
1 minute to read
Current macro-economic pressures mean there is a compelling case for investing in assets that benefit from changing ways of living, and which provide strong counter-cyclical features and inflation-matching characteristics.
Weaker economic growth means we expect to see an uptick in student numbers in the coming years, while rising affordability pressures mean structural imbalances between supply and demand for rental property are acute, supporting the case for Build to Rent and the positive outlook for rental growth. An ageing population means demand for age-targeted seniors housing will continue to grow.
UK residential development - Fail to plan, plan to fail
UK housebuilders are back in the market for land after a hiatus in the aftermath of the mini budget.
However, they are navigating more challenging circumstances as house prices are easing, while build and labour costs remain high.
Planning delays are another headache, particularly in the wake of the government’s decision to remove firm housing targets as well as wider uncertainty around planning reform. The net result will be fewer starts on site.
Read more or get in contact: Ollie Knight, head of residential development research
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