Skip to main content
  • About
  • News & Insights
  • Careers
  • International
0808 291 3524
Dialog that contains search functionality
Irwin Mitchell Logo
  • Personal
    • Personal
    • Personal Home
    • Personal Injury Claims
      • Personal Injury Claims
      • Personal Injury Claims Home
      • Abuse Claims
      • Accidents In Public Places Claims
      • Criminal Injury Compensation Claims
      • Accident At Work Claims
      • Air, Rail & Maritime Claims
      • Asbestos & Mesothelioma Claims
      • Changing Solicitors During a Personal Injury Claim
      • Group Claims
      • Holiday Accidents & Illness Claims
      • Illness Compensation Claims
      • Industrial Disease Claims
      • Injury Types
      • Military Injury Compensation Claims
      • No Win No Fee Personal Injury Claims
      • Personal Injury Claims In Scotland
      • How To Claim Compensation For Personal Injury
      • Product Liability Claims
      • Road Traffic Accident Claims
      • Serious Injury Claims
      • Who Can Help?
      • Support Services
    • Medical Negligence Claims
      • Medical Negligence Claims
      • Medical Negligence Claims Home
      • Cancer Misdiagnosis Claims
      • Birth Injury Claims
      • Cauda Equina Syndrome Claims
      • Never Event Claims
      • Ambulance & Paramedic Medical Negligence Claims
      • Cosmetic Surgery Claims
      • Private Healthcare Claims
      • Cerebral Palsy Claims
      • Defective Medical Device Claims
      • Dental Negligence Claims
      • Diabetes Misdiagnosis Claims
      • Fatal Medical Negligence Claims & Inquests
      • GP Negligence Claims
      • Hospital Negligence Claims
      • What Is Medical Negligence?
      • Meningitis Misdiagnosis Claims
      • Failure To Prevent Suicide Claims
      • Misdiagnosis Claims
      • Ophthalmic Negligence Claims
      • Pregnancy & Gynaecology Injury Claims
      • Sepsis Negligence Claims
      • Pharmacy And Medication Negligence Claims
      • Shrewsbury & Telford Hospital NHS Trust Maternity Care Claims
      • Stroke Misdiagnosis Claims
      • Surgery Compensation Claims
    • Counselling
      • Counselling
      • Counselling Home
      • Counselling Myths Dispelled
    • Family Law
      • Family Law
      • Family Law Home
      • Divorce Solicitors
      • Prenuptial & Postnuptial Agreement Solicitors
      • Child Abduction Solicitors
      • Civil Partnership Solicitors
      • LGBT+ Family Law Solicitors
      • Unmarried Couples' Rights
      • Divorce Financial Settlement Solicitors
      • Child Arrangement Orders
      • Family Mediation
      • Out of Court Divorce Solicitors
      • Separation Agreement Solicitors
      • Adoption & Surrogacy Solicitors
    • Wills, Trusts & Estates
      • Wills, Trusts & Estates
      • Wills, Trusts & Estates Home
      • Estate Planning Solicitors
      • Powers Of Attorney
      • Trusts
      • Will Writing Services
      • Will Disputes & Contentious Probate
    • Conveyancing & Property Solicitors
      • Conveyancing & Property Solicitors
      • Conveyancing & Property Solicitors Home
      • Conveyancing Fees Calculator
      • Buying A Property
      • Selling A Property
      • Remortgage
      • Transfer Of Equity
      • Buy To Let
      • Freehold Purchase (Leasehold Enfranchisement) Solicitors
      • Lease Extension Solicitors
      • Conveyancing Guide
      • Residential Property Disputes
    • Tax
      • Tax
      • Tax Home
      • Business Tax
      • Inheritance Tax
      • International Tax
      • Professional Negligence
      • HMRC Tax Investigations
      • Tax Disputes & Litigation
      • Tax Residence
      • Tax Returns & Compliance
      • UK Resident Non-Doms
      • Wealth Structuring
    • Probate
      • Probate
      • Probate Home
      • International Probate
      • Probate Sale Conveyancing
      • What Is Probate & How Does It Work?
    • Will, Trust & Estate Disputes
      • Will, Trust & Estate Disputes
      • Will, Trust & Estate Disputes Home
      • Trust Disputes
      • Inheritance Act Claims
      • Contesting A Will
      • Contentious Probate
      • Pre-Death Agreements
      • Professional Negligence
      • Challenging A Lifetime Gift
      • Financial Abuse
      • Statutory Will Disputes
      • Defending A Contested Will
    • Employment Solicitors
      • Employment Solicitors
      • Employment Solicitors Home
      • Employment Contract Solicitors
      • Employment Disputes
      • Dismissal & Redundancy Solicitors
      • Employment Discrimination Solicitors
      • Employment Lawyers for Legal Expenses Insurance
      • Harassment & Bullying At Work Solicitors
      • Parental & Family Friendly Employment Rights
      • Professional Discipline Solicitors
      • Recruitment & Promotion
      • Senior Executive Employment Lawyers
      • Settlement Agreements
      • Whistleblowing Solicitors
    • Elderly Legal Services
    • Protecting Your Rights
      • Protecting Your Rights
      • Protecting Your Rights Home
      • Actions Against The Police
      • Inquests
      • Environmental & Planning Law
      • Assessment & Treatment Unit Solicitors
      • Data Protection Breach Claims
      • Education Law
      • Healthcare & Social Services
      • Human Rights
      • Judicial Review
      • Mental Capacity
      • Professional Regulation & Discipline
      • Dispute Resolution
      • Legal Aid
    • Immigration Solicitors
      • Immigration Solicitors
      • Immigration Solicitors Home
      • British Citizenship & Naturalisation Solicitors
      • EU & EEA Immigration Solicitors
      • Indefinite Leave To Remain Solicitors
      • Spouse Visa Solicitors
      • Innovator Visa
      • Permanent Residence Solicitors
      • Business Immigration Solicitors
    • Crime & Investigations
      • Crime & Investigations
      • Crime & Investigations Home
      • Crime
      • Fraud & Financial Crime
      • Court Martial Solicitors
      • Motoring Offences Legal Advice
      • Regulatory Investigations & Enforcement
    • Insolvency
      • Insolvency
      • Insolvency Home
      • Business Restructuring & Insolvency
      • Debt Consultancy
      • Insolvency Disputes & Litigation
    • Court Of Protection
      • Court Of Protection
      • Court Of Protection Home
      • Court Of Protection Deputyship
      • Personal Injury Trusts
      • Court Of Protection Problems & Disputes
      • Healthcare and Social Services
      • Court of Protection Frequently Asked Questions
      • Powers Of Attorney Disputes
      • Statutory Wills Solicitors
  • Wealth Management
    • Wealth Management
    • Wealth Management Home
    • Asset Management For Personal Injury
    • Charity & Philanthropy
    • Estate Planning
    • Ethical & Sustainable Investing
    • Financial Planning
    • Intergenerational Wealth Management
    • Investment Management
    • Retirement Financial Planning
    • Family Offices
    • Succession Planning
    • Tax Planning
  • Business
    • Business
    • Business Home
    • Sectors
      • Sectors
      • Sectors Home
      • Agriculture & Rural Business
      • Retail, Leisure & Hospitality
      • Education
      • Financial & Professional Services
      • Landed Estates
      • Manufacturing
      • Real Estate
      • Sport
      • Technology & Communications
    • Banking & Finance
      • Banking & Finance
      • Banking & Finance Home
      • Corporate Banking
      • Leveraged & Acquisition Finance
      • Real Estate Finance
      • Receivables Finance & Asset Based Lending
    • Environmental, Social & Governance
      • Environmental, Social & Governance
      • Environmental, Social & Governance Home
      • Cyber Security
      • Environment
      • Net Zero
      • Social
      • Diversity & Inclusion
      • Governance
      • International
      • ESG Legal Advisory Services
      • Legislation Library
      • Manufacturing Sector
      • Real Estate
      • Retail, Leisure and Hospitality Sector
      • Sports Sector
    • Business Crime
      • Business Crime
      • Business Crime Home
      • Anti-Bribery & Corruption
      • Asset Tracing & Recovery
      • Cartels & Illegal Price Fixing
      • Cybercrime
      • Dawn Raids
      • Deferred Prosecution Agreements
      • Extradition
      • INTERPOL Red Notices
      • Mutual Legal Assistance
      • Private Prosecution
      • Proceeds Of Crime Act
      • Unexplained Wealth Orders
      • Fraud Lawyers
      • Insider Trading & Market Abuse
      • Corporate Internal Investigations
    • Business Immigration
      • Business Immigration
      • Business Immigration Home
      • Business Visitor Visa
      • Global Business Mobility Visas
      • Innovator Visa
      • Prevention Of Illegal Working
      • Skilled Worker Visas
      • Sole Representative Of An Overseas Business
      • UK Visa Sponsor License
    • Commercial
      • Commercial
      • Commercial Home
      • Commercial Contracts
      • Competition Law
      • GDPR & Data Protection
      • Information Technology
      • Sourcing
      • Notary Public Solicitors
    • Commercial Litigation & Dispute Resolution
      • Commercial Litigation & Dispute Resolution
      • Commercial Litigation & Dispute Resolution Home
      • Banking & Finance Litigation
      • Business Interruption Insurance Lawyers
      • Contract Disputes
      • Defamation & Reputation Management
      • International & Cross-Border Disputes
      • Commercial Debt Recovery
      • Litigation Funding
      • Professional Negligence
    • Corporate
      • Corporate
      • Corporate Home
      • Corporate Advisory
      • Equity Capital Markets
      • Mergers & Acquisitions (M&A)
      • Private Equity
      • Search Funds and Entrepreneurship Through Acquisition Lawyers
    • Costs Team
    • Employment Law
      • Employment Law
      • Employment Law Home
      • Business Immigration
      • Employment Contracts, Policies & Procedures
      • Disciplinary & Grievance
      • Employee & Industrial Relations
      • Employment Lawyers for Legal Expenses Insurance
      • Employment Litigation & Resolution Lawyers
      • Equality, Diversity & Discrimination
      • Flexible Working Arrangements
      • Health & Safety
      • HR Advice Service - IMhrplus
      • Managing Sickness Absence
      • Pensions
      • Recruitment
      • Restrictive Covenants
      • Restructuring & Redundancy
      • Self Employment, Contractors & Agency Workers
      • Employment Seminars, Training & Updates
      • TUPE
    • In-House Counsel
    • Intellectual Property and Media
      • Intellectual Property and Media
      • Intellectual Property and Media Home
      • Defamation & Reputation Management
      • Brand Accelerator
      • Copyright Lawyers
      • Design Rights Lawyers
      • Image Rights Lawyers
      • Online Marketplace Seller Account Or Listing Suspensions
      • Stopping IP Infringement By Sellers On Online Marketplaces
      • Patent Lawyers
      • Trade Mark Lawyers
      • Trade Secrets Lawyers
    • Legal Helpline
    • Licensing
      • Licensing
      • Licensing Home
      • Betting & Gaming Licensing
      • Event Licences
      • Alcohol Licensing
    • Pensions
      • Pensions
      • Pensions Home
      • Employment
      • Managing Death Benefit Trusts
    • Regulatory & Compliance
      • Regulatory & Compliance
      • Regulatory & Compliance Home
      • Road Transport & Operator Compliance
      • GDPR & Data Protection
      • Regulatory Investigations
      • Account Freezing Orders
      • Anti-Money Laundering
      • Companies House Prosecutions
      • Environment & Safety Regulatory Compliance
      • Financial Services Regulation
    • Real Estate
      • Real Estate
      • Real Estate Home
      • Corporate Occupiers
      • Real Estate Development and Regeneration
      • Construction & Engineering
      • Environmental
      • Real Estate Finance
      • Real Estate Investment
      • Later Living & Care
      • Planning
      • Property Litigation & Real Estate Disputes
      • Real Estate Tax
      • Residential Development
      • Strategic Land
      • Structured Real Estate
    • Restructuring & Insolvency
      • Restructuring & Insolvency
      • Restructuring & Insolvency Home
      • Corporate Insolvency
      • Partnership Insolvency
      • Directors' Duties
      • Restructuring Plans
      • Debt Recovery (up to £100,000) – Pricing
      • Restructuring
    • Tax
      • Tax
      • Tax Home
      • Corporate Tax
      • Real Estate Tax
      • Tax Investigations
  • People
    • People
    • People Home
    • Search By Name
    • Search By Location
    • Search By Expertise
    • Business Management
  • Offices
    • Offices
    • Offices Home
    • Birmingham
    • Brighton
    • Bristol
    • Cambridge
    • Cardiff
    • Chichester
    • Edinburgh
    • Gatwick
    • Glasgow
    • Leeds
    • Liverpool
    • London
    • Manchester
    • Middlesbrough
    • Newbury
    • Newcastle
    • North Yorkshire
    • Nottingham
    • Reading
    • Sheffield
    • Southampton
  • Contact
  • About
  • News & Insights
  • Careers
  • International
Irwin Mitchell Logo
Dialog with Irwin Mitchell phone number
Call us on 0808 291 3524

We're here 24/7, 365 days a year.

  • Home
  • News & Insights
  • Newsletters
  • Focus on Housing
  • The Human Factor

The Human Factor

James Pullan, Global Head of Student Property at Knight Frank, looks at different sectors of the housing market – and the opportunities on offer for investors.

The theoretical case for institutional investment in UK residential property has been building for the last 20 years, underpinned by a slow but consistent shift in household tenure. But the practical case, built largely on the success of the UK student sector, has only recently gained significant traction.

The difference has been a new understanding and recognition of the human factor, demonstrated in the changing mindset of both investors and, crucially, consumers.

Private rented sector (PRS)

The long-term decline in private renting ended in the 1990s. Between 2000 and 2017, the total housing stock in England increased by over 10%, but the share of stock that was privately rented more than doubled.

This shift has been driven by long-term changes in the wider housing market, the economy (especially in key regional cities) and by demographics. All of these have driven consistent, long-term rental growth in residential property.

What does this mean for investors?

Investors are beginning to react to this growing opportunity, especially given current low returns in bond markets.

There are currently around 132,000 units of purpose-built rented accommodation in the pipeline. Half of these have been completed or are under construction, and the other half have yet to start construction. Much of this construction is taking place in major cities, such as London,Birmingham and Manchester, and there are signs of development activity picking up in other locations.

At Knight Frank, our analysis of the key drivers in the rental market, combined with the outlook for household growth, indicates that the sector is set to expand from 5 million households to 5.79m by 2021. As a result, investors will become increasingly committed to longer-term income returns, as opposed to capital value. We forecast that the size of the UK build -to-rent (BTR) market is set to increase significantly from an estimated £25 billion in 2017 to £70bn by 2022.

Student property v residential

Compared to levels of historic investment in UK student property, institutional investment in residential is in a relatively immature position. But whilst each of the three specialist residential sectors (PRS, later living and student) has a specific occupier type, they’re all linked together as occupiers transition through each life-stage.

For example, universities attract young people into regional cities to study, and help keep them there. A recent survey of 70,000 students undertaken by Knight Frank and UCAS showed that 41% of final year students intended to stay in their university city after graduation. The step from purpose-built student accommodation to purpose-built graduate accommodation is obvious, and this separates residential investment in BTR, and other specialist property investment, from the wider market.

Whilst occupier demand for commercial property is finely balanced and in line with wider economic performance, residential investment occupier demand is far less cyclical, driven by individuals who don’t – or often can’t – change their need for certain types of property.

Results from the latest Knight Frank tenant survey, which canvassed the views of over 5,000 individuals currently renting, indicate that whilst 37% of renters are in the sector through choice, 68% of current renters still expect to rent in three years’ time. An estimated 25% of households will be in PRS by end of 2021.

Younger workers especially are taking advantage of the increased flexibility of renting as a tenure that allows them to move between locations without incurring any of the costs associated with buying and selling a property.

Affordability constraints in the sales market are also curtailing some tenants’ plans for house purchase, resulting in a longer stay in the PRS as they save for a deposit. There is also growth in the PRS within the later living market.

Later living

There are currently 11.8m over-65s living in the UK, and this cohort is projected to increase by 20% in the next ten years. Knight Frank’s latest survey shows that some 25% of over 55s would consider downsizing or moving into some form of retirement, or purpose-built, accommodation. This equates to potential demand for this type of housing from a population of over half a million. The gap between current supply and projected demand for retirement housing across the UK is stark.

The PRS is evolving. This is prompting new understandings of what it means to rent and let property. Whilst the last five years have been characterised by the rapid shift in size and complexity of demand for private rented and purpose-built accommodation, the next five years will be characterised by changes in the way private rented homes are supplied.

For general enquiries

0808 291 3524

Or we can call you back at a time of your choice

Phone lines are open 24/7, 365 days a year


Contact us today

For a free initial consultation

Freephone

0808 291 3524

Prefer not to call?

Use our form

This data will only be used by Irwin Mitchell for processing your query and for no other purpose.

About Irwin Mitchell

Founded in Sheffield in 1912, Irwin Mitchell has always been a bit different. Our advisers really get to know the people and business that we help.

We have offices around the UK so wherever you are, our experts can help.

Contact Us

Give us a ring to speak to a member of our team in the strictest confidence. Or you can fill out our contact form and we'll ring you back.

0370 1500 100

Our phone lines are open 24/7, 365 days a year

Get a call back

Fill in your details below and we'll be in touch as soon as possible

This data will only be used by Irwin Mitchell for processing your query and for no other purpose.

  • Contact
  • 0370 1500 100
  • Contact Irwin Mitchell
  • Social Media
  • Twitter
  • Facebook
  • YouTube
  • LinkedIn
  • Instagram
  • About Irwin Mitchell
  • About Us
  • Responsible Business
  • Careers
  • Business Management
  • Alumni Programme
  • Pay A Bill
  • Complaints Procedure
  • SRA Regulated
  • Terms & Conditions
  • Accessibility
  • Privacy & Security
  • Hoaxes
  • Modern Slavery Act Statement
  • Manage Cookie Settings

© 2025  Irwin Mitchell LLP

Irwin Mitchell LLP is authorised & regulated by the Solicitors Regulation Authority. Our Regulatory Information

Dialog that contains a form to request a callback.

Request A Callback

Enter your details below and a member of our team will contact you within 24 hours

This data will only be used by Irwin Mitchell for processing your query and for no other purpose.