The value of the senior living sector’s private rental market is expected to increase by £2.1bn by 2024, according to global property consultancy Knight Frank.
Knight Frank’s latest Senior Living Annual Performance Review predicts a 30% increase (an additional 50,000 units) in private senior living units over the next five years.
Tom Scaife, Head of Senior Living at Knight Frank, (pictured), said: “The rental market for senior living is very likely to increase in line with the changing tenure trends across the UK’s wider housing market. As well as increased interest in purpose-built rental, for-sale operators are also increasing their allocation of private rented units pepper potted in their schemes.”
Knight Frank said growth would be concentrated in the South East, South West, Midlands and East of England with the number of units priced at more than £1,000 per sg ft in London rising from 300 to 2,000 by the end of 2023.
There are more than 4,000 existing senior living private rental units currently in the UK, with 93% incorporated within wider for-sale schemes, with the remaining 7% is being delivered by purpose-built rental accommodation.
Knight Frank estimated the value of the private rental market will increase from £1.3bn in 2019 to £3.4bn by 2023 with growth driven by private equity and institutional capital looking to diversify their real estate assets into alternative markets.