Real Estate Insights Safe as houses? Thinking on the rise of investment into UK residential markets

Abstract

Purpose

In recent decades, institutional investment has become increasingly focussed on residential property in the United Kingdom, reflecting interest in what was previously considered an “alternative” asset class, but is now an evolving and ever more complex sector. This short thought piece considers how such processes may be understood through investment-related research.

Design/methodology/approach

The UK residential market has experienced substantial capital inflows in the wake of the global financial crisis. This reflective piece suggests there is a need for more research into residential real estate as an institutional asset class to further unpack and understand shifting market dynamics within the United Kingdom. It offers insight into evolving market trends across a diverse range of investors and market sub-sectors.

Findings

This paper considers the diverse research opportunities within the residential investment markets, including, but not limited to, the private rented sector, build-to-rent and purpose-built student accommodation, presenting opportunities for burgeoning research.

Practical implications

The viewpoint suggests how this research lacuna may be bridged through additional research in not just the UK residential market, but also how investors may further integrate and operationalise UK residential assets in diversified or specialised investments, from domestic to international propositions. The suggested research agenda promotes enhanced understandings of residential markets and processes driving investment decision-making.

Originality/value

As the integration of residential property into vehicles such as Real Estate Investment Trusts, private equity funds and managed multi-asset portfolios continues to increase, there is an amplified need to understand the market context in which such investment flows occur, including the potential impact of COVID-19, Brexit and the cyclical evolution of real estate markets more broadly.

Citation

Livingstone, N. (2022), "Real Estate Insights Safe as houses? Thinking on the rise of investment into UK residential markets", Journal of Property Investment & Finance, Vol. 40 No. 3, pp. 324-329. https://doi.org/10.1108/JPIF-01-2022-0001