UK residential market.
The UK residential market is driven by a well documented long term shortage of housing stock. That was made worse in the financial crisis when house building slowed significantly. Planning constraints also limit house building and residential development.
On the demand side, there is an increasing population, which is also living longer.
Supply shortages have caused average house prices to rise by c.7% pa over the past 22 years.
The rental market has been very strong over the past two decades. Two sectors are particularly attractive – students and young professionals. These are both important target rental markets, as they are large, growing and low risk.
Rents have risen by 5% pa, on average. The rate of growth seems to be accelerating.