Our Living market update for Q4 2024 notes the latest trends driving investment into Build to Rent, Single Family Rental, Student, Healthcare and Senior Living, which are all set to grow as market conditions improve further.

• The structural long-term trends underpinning the Living sectors investment rationale have only intensified over 2024. In particular the supply side challenges remains a constraint.
• The combination of the shortfall in adequate supply and the sectors close correlation to wage growth and consumer confidence, combined with high mortgage rates for first-time buyers, has ensured that the Living sectors remain attractive in today’s environment. 
• The combination of tight supply and stable demand is creating a mixed picture within the rental market with continued cooling of rental growth in Q4 2024 but an anticipation that rents will remain under some upward pressure in 2025.
• In Student Accommodation, initial signs from applications meeting the October 2024 deadline, point to a revival in demand for UK Universities from international students.
• In the Care Home sector the rise in National Insurance Contributions points to further increases in self-funded fees, whilst in Senior Living the Older People’s Housing taskforce report was published in Q4 and included ten recommendations for the sector.