Housing provision is key to London's success
Housing provision in London will play a key role in support of a competitive lifestyle offering
2 minutes to read
Being able to offer a range of residential accommodation for this talent will play a key role in supporting London’s competitive lifestyle offering, as it jostles with other global gateway cities to attract and retain the world’s best people. Providing housing to people at different life stages, from high quality student accommodation and rental accommodation to family housing and senior living, is critical to London’s success as a talent magnet.
Predictions in demographic trends provide a solid footing for demand projections. The forecast change in 20-29 year olds, for example, will see London have one of the highest concentration of this age group in Europe.
"The city's younger population is a function of London’s higher education offer, as well as its ability to retain and attract graduates"
This younger population is a function of London’s higher education offer, as well as its ability to retain and attract graduates. In 2019, for example, 70% of final-year students in London said they intended to stay in the city after graduation, according to the Knight Frank/UCAS Student Accommodation Survey.
For many, affordability pressures – particularly in London – mean that demand is growing within the private rented sector. Indeed, by 2030 renter households in London will represent 1 in 4 households.
At the other end of the scale, and in keeping with wider trends, London is also characterised by growth in its older population. London’s 50+ workforce has increased by 50% over the last ten years at a rate of 40,000 per annum. Increased pressures into retirement will mean an increase in older age workers and real estate will need to respond accordingly.
So how does accommodation fit into this?
London needs to ensure there is suitable provision of vibrant, amenity rich, flexible living space for all stages of life. This has implications for the student, multifamily and senior living sectors. The challenge? Operators within these sectors will have to evolve to differentiate themselves from the wider rental market.
If today’s renters are driven by service and amenity, tomorrow’s renters – faced with a choice of product – will look more closely at the ways in which housing enhances their lifestyle and values. Increasingly these values will centre on community and social and environmental responsibility.
This is exemplified in the growing intertwined relationship between working and living and the opportunities this is creating for commercial and residential real estate investors through mixed used developments.
Indeed, developments such as Kings Cross, Southbank Place, Battersea Power Station and Wood Wharf benefit from the retail, leisure, commercial, residential and place-making elements that make them exciting places to work, live and socialise. This sets a high benchmark for what can be achieved when it comes to a fully-realised and fully-rounded mixed-use offering and should act as an exemplar for future developments.