Large Scale UK Residential Investment Achieving Market Maturity (March 2021) Short Paper
This research reviews the evolution of UK residential sector as an institutional investment and considers the prospects for further growth. It draws primarily on the institutional investment surveys the IPF conducted over the last nine years, from 2012 to 2020, as well as a series of interviews with senior investment professionals. The report highlights the significant growth in institutional investment over the past decade but recognises that market maturity is still some way off. Supply of suitable stock remains a significant stumbling block and government support is needed, particularly to help with the current planning regime. Strategically, investors are considering a broader offering in their portfolios, including single family housing; accommodation that appeals to a wider spectrum of renters, including retirees; and affordable housing options. The influence of ESG on the sector is expected to intensify in the coming years; it has already had a significant impact on building design.