From an investment perspective, residential is the single largest asset class in the UK. In fact, residential in the UK is worth eight times the value of commercial property, which includes offices and warehouses that provide the infrastructure for our economy. This market offers one of the best risk/reward ratios available at scale, and, unlike many other investment sectors, demand is non-cyclical and growing. Residential property also makes up a significant portion of our national and personal wealth and it is responsible for people’s shelter, making it both economically and socially vital.
As a result, investing in UK residential in 2023 is not just about getting exposure to a compelling return. Investors must increasingly consider the consequences of their investments, including facilitating economic activity, serving a social need, and helping to improve the impact that living and investing have on the environment. Environmental, Social and Governance (ESG) factors in turn raise the importance of residential as an investment class, because of the rising significance of ESG to investment attractiveness and importance.
Download the full report below and read our analysis on the year ahead in UK residential real estate investment.