Adaptive, resilient, ready to scale
The UK’s Living Sectors are about to enter an enormous growth phase – they are adaptive, resilient and, crucially, ready to scale. For institutional investors, built to rent, student property and seniors housing assets continue to represent a well-established opportunity to diversify, reduce volatility and support returns.
This is one of the UK's fastest growing asset class, with its total value increasing by 45% over the past five years. Against this backdrop of rapid expansion, it is clear that the market is becoming increasingly sophisticated and diverse.
Investors are not just increasing their exposure to established asset classes like purpose-built student accommodation and build to rent, but are also embracing emerging opportunities in areas such as single family housing and seniors rental. This evolution reflects both changing demographic needs and a growing recognition of the sector's ability to deliver stable, long-term returns while meeting essential social needs.
The findings in this report paint a picture of a market that is maturing at pace, yet still has significant untapped potential. The challenge of meeting the requirements of the next generation of renters will drive growth, deepen the market and provide diversity. With new opportunities emerging, this year’s NextGen Living report aims to equip you with the best intelligence to support your investment strategies.
James Mannix | Global Head of Living Sectors at Knight Frank
The UK’s Living Sectors are about to enter an enormous growth phase – they are adaptive, resilient and, crucially, ready to scale. For institutional investors, built to rent, student property and seniors housing assets continue to represent a well-established opportunity to diversify, reduce volatility and support returns.
This is one of the UK's fastest growing asset class, with its total value increasing by 45% over the past five years. Against this backdrop of rapid expansion, it is clear that the market is becoming increasingly sophisticated and diverse.
Investors are not just increasing their exposure to established asset classes like purpose-built student accommodation and build to rent, but are also embracing emerging opportunities in areas such as single family housing and seniors rental. This evolution reflects both changing demographic needs and a growing recognition of the sector's ability to deliver stable, long-term returns while meeting essential social needs.
The findings in this report paint a picture of a market that is maturing at pace, yet still has significant untapped potential. The challenge of meeting the requirements of the next generation of renters will drive growth, deepen the market and provide diversity. With new opportunities emerging, this year’s NextGen Living report aims to equip you with the best intelligence to support your investment strategies.
James Mannix | Global Head of Living Sectors at Knight Frank
The UK’s living sectors are about to enter an enormous growth phase – they are adaptive, resilient and, crucially, ready to scale. For institutional investors, built to rent, student property and seniors housing assets continue to represent a well-established opportunity to diversify, reduce volatility and support returns.
This is one of the UK's fastest growing asset class, with its total value increasing by 45% over the past five years. Against this backdrop of rapid expansion, it is clear that the market is becoming increasingly sophisticated and diverse.
Investors are not just increasing their exposure to established asset classes like purpose-built student accommodation and build to rent, but are also embracing emerging opportunities in areas such as single family housing and seniors rental. This evolution reflects both changing demographic needs and a growing recognition of the sector's ability to deliver stable, long-term returns while meeting essential social needs.
The findings in this report paint a picture of a market that is maturing at pace, yet still has significant untapped potential. The challenge of meeting the requirements of the next generation of renters will drive growth, deepen the market and provide diversity. With new opportunities emerging, this year’s NextGen Living report aims to equip you with the best intelligence to support your investment strategies.
James Mannix
Global Head of Living Sectors at Knight Frank
£10 billion
invested in 2024
UK Living Sectors investment topped £10 billion in 2024, accounting for 25% of overall real estate acquisition activity. Robust investment has continued despite a challenging investment market, reflected by a shift in the types of deal structures investors are targeting.
£45 billion
planned investment over the next five years
By 2029, close to half of investors plan to increase their exposure to the Living Sectors by at least 80%, with nearly a quarter planning to double their current exposure. In total, our survey respondents alone outlined ambitions to invest a further £45 billion over the next five years.
71%
of investors targeting single family housing
The big story in build to rent (BTR) over the last few years has been the rapid growth of newer subsectors, largely single family housing (SFH). Investors have spent £3.7 billion funding or acquiring SFH since the start of 2023, for example. As we explore on page 10, our survey respondents outlined plans to increase exposure in the coming years, with 71% of respondents planning to have invested by 2029.
London, Bristol, Manchester
Top target cities for growth
There is a strategic focus on key urban centres, with London, Bristol and Manchester identified as the top three target locations for investors across the Living Sectors. Other locations of note in the top 10 include Birmingham, Edinburgh, Bath and Oxford.
39%
of investors targeting seniors housing rental
The BTR segment within senior living remains small as a proportion of the overall seniors market, but it is growing quickly. Within our survey, 39% of respondents said they plan to invest within five years, up from a fifth currently. We expect the number of seniors rental properties in the UK will increase by 150% over the next five years, albeit from a low base.
65%
of PBSA stock built pre-2012
There is a relatively untapped opportunity in the purpose built student accommodation (PBSA) market to drive value by upgrading and repositioning existing stock, much of which fails to meet the evolving needs of today’s students. Indeed, as we explore on page 11, 65% of existing PBSA supply in the UK was built before 2012, which has left a clear two-tier market in terms of age and quality.
£10 billion
invested in 2024
UK Living Sectors investment topped £10 billion in 2024, accounting for 25% of overall real estate acquisition activity. Robust investment has continued despite a challenging investment market, reflected by a shift in the types of deal structures investors are targeting.
£45 billion
planned investment over the next five years
By 2029, close to half of investors plan to increase their exposure to the Living Sectors by at least 80%, with nearly a quarter planning to double their current exposure. In total, our survey respondents alone outlined ambitions to invest a further £45 billion over the next five years.
71%
of investors targeting single family housing
The big story in build to rent (BTR) over the last few years has been the rapid growth of newer subsectors, largely single family housing (SFH). Investors have spent £3.7 billion funding or acquiring SFH since the start of 2023, for example. As we explore on page 10, our survey respondents outlined plans to increase exposure in the coming years, with 71% of respondents planning to have invested by 2029.
London, Bristol, Manchester
Top target cities for growth
There is a strategic focus on key urban centres, with London, Bristol and Manchester identified as the top three target locations for investors across the Living Sectors. Other locations of note in the top 10 include Birmingham, Edinburgh, Bath and Oxford.
39%
of investors targeting seniors housing rental
The BTR segment within senior living remains small as a proportion of the overall seniors market, but it is growing quickly. Within our survey, 39% of respondents said they plan to invest within five years, up from a fifth currently. We expect the number of seniors rental properties in the UK will increase by 150% over the next five years, albeit from a low base.
65%
of PBSA stock built pre-2012
There is a relatively untapped opportunity in the purpose built student accommodation (PBSA) market to drive value by upgrading and repositioning existing stock, much of which fails to meet the evolving needs of today’s students. Indeed, as we explore on page 11, 65% of existing PBSA supply in the UK was built before 2012, which has left a clear two-tier market in terms of age and quality.
The next generation of living
UK living sectors investment topped £10 billion in 2024, accounting for 25% of overall real estate acquisition activity. Robust investment has continued despite a challenging investment market, reflected by a shift in the types of deal structures investors are targeting.
Investors target major expansion
By 2029, close to half of investors plan to increase their exposure to the Living Sectors by at least 80%, with nearly a quarter planning to double their current exposure. In total, our survey respondents alone outlined ambitions to invest a further £45 billion over the next five years.
The great suburban shift
The big story in build to rent (BTR) over the last few years has been the rapid growth of newer subsectors, largely single family housing (SFH). Investors have spent £3.7 billion funding or acquiring SFH since the start of 2023, for example. As we explore on page 10, our survey respondents outlined plans to increase exposure in the coming years, with 71% of respondents planning to have invested by 2029.
London, Bristol, Manchester: UK’s investment hotspots
There is a strategic focus on key urban centres, with London, Bristol and Manchester identified as the top three target locations for investors across the Living Sectors. Other locations of note in the top 10 include Birmingham, Edinburgh, Bath and Oxford.
Seniors housing revolution
The BTR segment within senior living remains small as a proportion of the overall seniors market, but it is growing quickly. Within our survey, 39% of respondents said they plan to invest within five years, up from a fifth currently. We expect the number of seniors rental properties in the UK will increase by 150% over the next five years, albeit from a low base.
Student housing heading for modernisation
There is a relatively untapped opportunity in the purpose built student accommodation (PBSA) market to drive value by upgrading and repositioning existing stock, much of which fails to meet the evolving needs of today’s students. Indeed, as we explore on page 11, 65% of existing PBSA supply in the UK was built before 2012, which has left a clear two-tier market in terms of age and quality.
