2025-12-17-莱坊-UK_Living_Sectors_–_Yield_Guide_December_2025_2页_274kb

Prime Yield Guide – December 2025 Summary

Core Content

This document is the Prime Yield Guide – December 2025 published by Knight Frank Intelligence, providing indicative yield data for prime, stabilised institutional-grade assets in the UK property market. The yields are based on Net Initial Yield (NY), assuming a rack rented property. The guide covers various sectors and regions, with a focus on income-focused transactions.

Main Sectors and Yields

Build to Rent

• Student Property:

  • Prime London - Direct Let: 4.25% (Dec-24) → 4.50% (Dec-25), 1 MONTH CHANGE: +0.25%, MARKET SENTIMENT: STABLE
  • Prime Regional - Direct Let: 5.00%–5.25% (Dec-24) → 5.25%–5.50% (Dec-25), 1 MONTH CHANGE: +0.25%–+0.50%, MARKET SENTIMENT: STABLE
  • Prime London - 25 yr lease, Annual RPI: 4.25% (Dec-24) → 4.00% (Dec-25), 1 MONTH CHANGE: -0.25%, MARKET SENTIMENT: STABLE
  • Prime Regional - 25 yr lease, Annual RPI: 4.50% (Dec-24) → 4.25% (Dec-25), 1 MONTH CHANGE: -0.25%, MARKET SENTIMENT: STABLE

• Co-Living:

  • Zone 1 London Prime: 4.25% +, MARKET SENTIMENT: STABLE
  • Zone 2 London Prime: 5.00% +, MARKET SENTIMENT: STABLE
  • Zones 3-4 London Prime: 4.15% +, MARKET SENTIMENT: STABLE
  • Greater London Prime: 4.25% +, MARKET SENTIMENT: STABLE
  • South East Prime: 4.25% +, MARKET SENTIMENT: POSITIVE
  • Tier 1 Regional Cities: 4.50%, MARKET SENTIMENT: STABLE
  • Tier 2 Regional Cities: 4.75% +, MARKET SENTIMENT: STABLE
  • South East - Single Family Housing: 4.00% +, MARKET SENTIMENT: POSITIVE
  • Regional - Single Family Housing: 4.50% +, MARKET SENTIMENT: POSITIVE

• Seniors Housing:

  • Prime South East: 5.25% +, MARKET SENTIMENT: NEGATIVE

Key Insights

• Yield Trends: Across most sectors, yields have remained relatively stable from December 2024 to December 2025, with some increases observed in South East - Single Family Housing and Regional - Single Family Housing, and decreases in Prime London - 25 yr lease, Annual RPI and Prime Regional - 25 yr lease, Annual RPI.
• Market Sentiment:
  • Stable: Most sectors, including Build to Rent, Co-Living, and Regional properties, show stable market sentiment.
  • Positive: South East - Single Family Housing and Regional - Single Family Housing show positive sentiment.
  • Negative: Seniors Housing in the Prime South East region indicates a negative market outlook.
• Investment Focus: The guide highlights the importance of income-focused transactions, particularly in prime and stabilised institutional-grade assets.
• Yield Basis: All yields are provided on a Net Initial Yield (NY) basis, reflecting the income potential of the assets under a rack rented property model.

Key Contacts

Valuation & Advisory

• Kitty De Conto – Partner, Build to Rent
  +44 20 7861 1652 | Kitty.DeConto@knightfrank.com

• Neil Armstrong – Partner, Student Property
  +44 20 7861 5332 | Neil.Armstrong@KnightFrank.com

• Peter Youngs – Partner, Seniors Housing
  +44 20 7861 1656 | Peter.Youngs@KnightFrank.com

• David Shapland – Partner, Build to Rent
  +44 20 7861 5455 | David.Shapland@KnightFrank.com

• Sarah Jones – Partner, Student Property
  +44 20 7861 1277 | Sarah.Jones@KnightFrank.com

• Oliver Knight – Partner, Research – Residential Development
  +44 20 7861 5134 | Oliver.Knight@KnightFrank.com

Capital Advisory

• Lisa Attenborough – Partner, KFCA – Head of Capital Advisory
  +44 20 3909 6846 | Lisa.Attenborough@KnightFrank.com

Additional Information

• Knight Frank Research offers strategic advice, consultancy, and forecasting services to a range of clients including developers, investors, funding organisations, and public sector entities.
• The report is for general information only and not to be relied upon for decision-making. Knight Frank LLP disclaims all liability for any loss or damage arising from its use.
• The document is not to be reproduced without prior written approval from Knight Frank LLP.

Conclusion

The Prime Yield Guide – December 2025 provides a snapshot of the UK property market, highlighting the current and projected yields for various sectors and regions. While most areas show stable market sentiment, some, like Seniors Housing, indicate negative trends. The guide underscores Knight Frank’s expertise in property valuation and advisory, with key contacts available for further inquiries.