More than £1bn was invested into the UK single-family housing (SFH) sector in the first three quarters of 2023 – a new record high, according to data from Savills.
The firm estimates investors are looking to deploy more than £25bn into the sub-sector over the next five to 10 years, but despite housebuilders looking to weave single family housing into their business models due to the slowdown in sales rates, there is a significant supply shortage of single-family housing stock.
Piers de Winton, head of national residential investment and single family at Savills, said: “The fundamentals for investing in SFH remain strong as demand continues to outstrip supply. The shortage of houses across the country has led to an increased demand for rental properties which has in turn pushed rents. There will continue to be strong demand for rental properties given the aspiration of homeownership has become increasingly distant in a higher interest rate environment.
“Tenants demand for amenities such as proximity to local schools, green spaces and health services also make SFH a compelling proposition. SFH clearly has a role in alleviating the UK’s supply crisis, but will need to scale up considerably if it is to shift the dial.”
