The UK’s operational living sectors could more than double in value by 2029.
BNP Paribas Real Estate said that “if market forces align” across planning policies, development viability, data transparency and sector liquidity, the value of the country’s student housing, build-to-rent, single family rental and senior living sectors could rise to £470bn from £190bn today.
If the agency’s predictions are right, the largest growth would be seen in single-family rental, which would rise from £6.8bn across 300 schemes to £59bn, a leap of more than 700%.
Senior living would remain the largest market, posting growth of almost 250% to hit £219bn. BTR could rise by 56% to £97bn, and student living by 70% to £98bn.
Rebecca Shafran, director of alternative markets research at BNP PRE, said: “With the potential for the size of the market to more than double, it is clear that alongside demographic shifts and urbanisation trends, it places an emphasis on the crucial role these sectors can play in addressing the housing crisis and supporting the living needs of the future.
“A few question marks have been placed over the future of the likes of single-family rental, senior living rental models, and student living as asset classes, however, this data shows that there are reasons to be bullish with investment allocations.”
Andrew Screen, head of residential capital markets, added: “We have witnessed a significant increase in investors targeting the living sectors over the past six months, and the majority that I am speaking to are all primed and ready to go and are eagerly awaiting the outcome of the Budget. We also anticipate large portfolio transactions to be traded over the next 12 months, which will be particularly interesting to watch in terms of pricing, yields, and volumes traded.”
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