5 Mega Trends That Will Revolutionise UK Property
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Editor: Shaun Callacher
5 Mega Trends That Will Revolutionise UK Property
The UK (& global) property market is on the verge of major transformations that will revolutionise the industry. Below I share 5 mega trends that will no doubt change the face of the UK property market. If us investors plan ahead for the up and coming trends we can no doubt profit hugely.
Here are the 5 mega trends...
1/ Generation 65+
Just under a quarter of the UK’s population will be over 65-years-old by 2039 according to the office of national statistics. That’s predicted to be 18 million people that will require more specialized facilities and building adaptations to meet the needs of the elderly!
In fact, the estimates by the UK office of national statistics show the proportion of those aged 65 or over increased by 3.9 percent between 1974 and 2014, from 13.8% of the UK population to 17.7%. This proportion is projected to increase by a further 6.6 percent by 2039.
The U.K. has an ageing population, this is due to the Baby boomer generation from the 60’s entering their later years and the fact that we are now living longer.
Developers will be forced to focus on ergonomic design, both in terms of new projects and existing buildings that meets the needs of this independent generation of retired people. Germany will likely become the poster child for this new phenomenon: as of 2009, already 21% of the population were over 65 — a figure which could reach 29% by 2030 and 34% by 2060 — making it an excellent example to follow in terms of innovation and design.
One to watch out for: Student like care homes with wider doorways, entrance ramps, adapted bathroom facilities, additional accommodation for care assistants, concierge services and hotel-like interior design, motion detectors and smart technology to monitor the physical condition of tenants.
2/ City Expansion
According to the office of national statistics, when comparing the 2011 Census to the 2001 Census, 9 out of 10 areas seen Urban populations increase dramatically compared to rural areas.
Because of this shift to urban areas major cities are growing in population transforming from big cities to mega cities!
The sheer extent of population living in these zones will see real estate prices skyrocket as living areas dwindle, a trend that is already particularly pungent in cities like London and greater Manchester. Apartments in the latter are already smaller than a decade ago adapting to the growing demand and lack of space.
One to watch out for: residential buy-to-let investments, demand for which is definitely going to grow. As central areas become even less affordable, investors should target peripheral suburban markets with upcoming public transport and access projects.
3/ Remote working because of telecommunicating
Thanks to new technology like online video-conferencing, email and instant chat, companies are able to develop networks of professionals across a country and across the globe. In line with this online communication shift, remote working has increased throughout the UK and globe.
According to the office of national statistics 4.2 million people work remotely throughout the UK in 2014. This is the highest amount since recording began.
With the consistent thrive for businesses to lower overheads and the increase of technology I have no doubt this will be an ongoing upward trajectory for many years to come.
Plan for: infrastructural needs such as access and reliability of online connections in new residential buildings as well as new working arrangements like desk and room-sharing as well as co-working spaces.
4/ Going Green
In light of climate change, global warming and severe changes to the ecosystem the government is pushing for greener and environmentally friendly solutions to the property industry.
Innovative developers are coming up with new ideas to create energy efficient properties which keep emissions and bills low whilst also creating a light, airier and practical working or living space.
One To Watch Out For: The growth of more green roofs and water collection systems to minimise energy and water bills while contributing to landscaping maintenance at a minimal cost. Underutilized roof space can also be leased to solar farms, thus increasing the profitability of current installations.
5/ Peer – Peer Lending
With the increase of property related peer to peer lending websites, borrowing and lending in the property market is about to be shaken up. Peer to peer lending websites are taking away the monopoly mainstream banks have held over the property market for decades. New borrowing criteria is being created by crowd funding websites, which is ultimately dictated by the lenders (us ordinary people!).
Within the coming months/years it will be interesting to see the regulations that come into play on peer to peer lending platforms. Government regulation is currently minimal allowing huge grounds to be made in this industry. Let’s just hope the bank don’t twist our governments arm to put in new legislation which will flatten the current growth curve.
One To Watch Out For: A continuing growth in the peer to peer lending industry, including finance for development, mortgages and other investments, Perhaps again allowing finance to be accessed by those who have been excluded by mainstream lenders since the property crash almost a decade ago.
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