THE FUTURE OF LIVING: 7 TAKEAWAYS FROM THE LD RESIDENTIAL INVESTMENT CONFERENCE 2023

After a tough 12 months across all markets, it was great to see a packed room at the LD Residential Investment Conference 2023. The event was full of engagement, nods of resilience and positivity for the future of “Living”. Despite a general acceptance that the markets remain tough, the mood was upbeat.

From a European perspective, Living is, for the first time, currently the largest real estate investment class in Europe, accounting for c. 32% of direct investment in Q2 2023.

OUR 7 KEY TAKEAWAYS

The strong supply and demand fundamentals still underpin the Living market in the UK, and its success looks set to continue. Some areas that resonated with us were:

1. Affordability issues in the UK – There are still over 2m households in the UK that don’t have the homes they need. How can we better refocus on ensuring those in society that are priced out of home ownership are appropriately catered for in safe and “fit for purpose” homes.
2. Converting Office Space – 25-30% of existing office space has the potential to be converted into housing. At Montagu Evans, we are soon to launch a new market solution/campaign on office obsolescence. More on this coming soon.
3. Integrated Retirement Communities (IRC) – The older demographic of the UK is increasing, with circa 6.2m people over the age of 75 currently living in the UK. There is a need for both flexible and diverse models of housing (rental and discounted market flats) to suit different aspirations within this age group. With circa £2.2 trillion of housing wealth reportedly held by the over 65’s, how can we better support our ageing population?
4. Rent controls – A dreaded term with negative connotations. Looking to the experience of rent controls in Europe might help us better digest the possibility of controls in the UK. Is it more a case of providing a more transparent framework for rent setting rather than being “controlling” and restrictive? It’s a subject out for debate.
5. AI – The role of AI and new tech in student/BTR/senior Living – It’s coming! When will “care robots” be a common feature within our senior living housing? How can we best utilise technology across the living sector to efficiently run and manage our buildings better?
6. Is “S” becoming the new “E” in “ESG”? – With an increasing focus on mental health, wellness and community, it feels like the time is now right to refocus a little here.
7. PBSA This is consistently a strong performer, with very strong rental growth reported. This has helped to offset some of the wider challenges the sector has faced around increasing development and capital costs.

One thing is not disputed, we need to continue to work collaboratively to design and build inspiring and safe buildings and communities which put people at their heart. The opportunity for intergenerational Living is something we should continue to explore the benefits of and focus on being less siloed in our approach to building homes.

We look forward to exploring some of these topics more later this year as we look at the future of Living in the Towns of Tomorrow. Sign up here to keep up to date with the latest.