The UK property market is in a continuous state of evolution, shaped by various economic, social, and political forces. As we move forward into the next decade, investors will need to pay close attention to the emerging trends that are set to redefine the property investment landscape. Here are six key trends to keep an eye on.
The Ongoing Impact of COVID-19
The COVID-19 pandemic has indelibly changed the way we live and work, and these changes have had profound implications for the property market. A key trend has been the rise of remote working, leading to a shift in demand from urban centres to more spacious homes in suburban and rural areas. A 2021 survey by Savills found that 71% of respondents who were buying a home indicated that the pandemic had influenced their choice of location.
Sustainability and Green Housing
With the UK committed to reaching net-zero greenhouse gas emissions by 2050, there is a growing emphasis on green and sustainable housing. The government has already launched initiatives such as the Green Homes Grant in 2020 to encourage homeowners to improve their homes’ energy efficiency. Property investors will increasingly need to factor in sustainability when making investment decisions.
The 'Silver Renter' Phenomenon
The UK is experiencing a demographic shift towards an ageing population. The Office for National Statistics predicts that the over-65 age group will account for over half of the growth in UK households over the next two decades. A growing number of these ‘silver renters’ are choosing to rent rather than own homes in their later years, presenting new opportunities for property investors.
Proptech Revolution
Technology is revolutionising the property industry. Virtual reality property tours, AI-powered property management tools, and blockchain technology are all set to transform how we buy, sell, and manage property. Embracing these technologies can give property investors a competitive edge by increasing efficiency and providing real-time data to inform investment decisions.
Urban Regeneration Projects
Major regeneration projects across UK cities present significant opportunities for property investors. Developments like the £5.5 billion Liverpool Waters project and the £1 billion Manchester Airport City project are set to create thousands of new homes and jobs, attracting investment and driving property price growth
Changing High Streets
The decline of traditional retail, exacerbated by the pandemic, is leading to a transformation of the high street. There’s a trend towards more experiential offerings, creating opportunities for property investors to capitalise on this changing landscape.
