2023-09-13-莱坊-UK_Living_Sectors_Investor_Survey_2023_12页_753kb

UK Living Sectors Investor Survey 2023 Summary

The 2023 Knight Frank UK Living Sectors Investor Survey, based on responses from 50 institutional investors managing £75 billion in UK Living assets, highlights strong growth and resilience in the sector despite challenges like rising debt costs and regulatory hurdles. By 2028, 71% of investors expect to increase their exposure, with 29% aiming to double investments. Key trends include expansion in Build to Rent (BTR) and Purpose-Built Student Accommodation (PBSA), while Seniors Housing shows potential for growth due to an aging population. Single-Family Housing is also attracting significant interest.

ESG factors are crucial, with 95% of respondents agreeing that strong environmental and sustainability credentials create a value premium and influence investment decisions. Operational challenges, such as high debt costs and planning regulations, are major concerns, but easing inflation and lower interest rates could boost transaction activity. Future growth opportunities are concentrated in cities like London, Manchester, and Bristol, driven by student demand and city regeneration.

Expert views emphasize the sector's ability to act as an inflation hedge due to counter-cyclical and income-stable characteristics. Overall, the report underscores a shift toward diversification and sustainable investments, positioning the Living sectors as a key focus for institutional investors in the medium to long term.

Key Findings:

• Investment Plans: By 2028, over 90% of investors plan to increase investments in Living sectors. BTR and PBSA lead with 93% and 62% of respondents active; Seniors Housing sees growth interest.
• Growth Areas: Multi-family and PBSA remain core; Single-Family Housing and Co-Living offer new opportunities.
• Challenges: High debt costs (62% cited), planning issues, and operational costs are top barriers.
• ESG Influence: Sustainability is a key driver, with investors paying premiums for green credentials and reducing obsolescence risk.
• Regional Focus: London, Manchester, and Birmingham are top target cities for development and investment.