Cushman & Wakefield RETHINKING: The Shape Of Real Estate 2040

PRIVATE RENTED SECTOR Housing delivery across the UK has fallen substantially short of demand over the last two decades at least. Relatively stringent planning regulations, limited land availability – particularly in key locations – and infrastructure connection issues have all contributed to the shortfall in supply. The resulting imbalance has led to rapid growth in house prices. BY 2040, THE PRS SECTOR WILL ACCOUNT FOR 20.6% OF ALL HOUSING STOCK.

PRS AND OWNER OCCUPIER FLOORSPACE FORECAST

INDEX (2023 = 100)

160

140

120

100

80

60

40

20

2015

2010

2025

2035

2020

2030

2005

2040

00 FORECAST

PRS FORECAST

OWNER OCCUPIER

PRS

CAGR

CAGR

TOTAL

TOTAL

VOLUME CHANGE VOLUME CHANGE

2023-40

2005-23

2023-40

2005-23

2023-40

2005-23

OWNER OCCUPIER

0.3%

0.1%

5.5%

1.5%

1,218.9M SQ FT

360.3M SQ FT

PRIVATE RENTED SECTOR

4%

2.1%

102.6%

43.1%

2,378.7M SQ FT

2,012.8M SQ FT

RETHINKING: THE SHAPE OF REAL ESTATE IN THE UK

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CUSHMAN & WAKEFIELD

PRIV