Rents of mainstream rental properties in London are forecast to continue to increase between 2024 and 2028. Rental growth is expected to be the strongest in 2024, at 5.5 percent. On the other hand, house prices are expected to grow at a slower rate.

In the five-year period between 2024 and 2028, the prime residential rent for existing properties in Greater London is expected to increase by over 19 percent. The highest percentage change is expected to occur in 2024, when rents are to rise by 5.5 percent. In the UK. rental growth has accelerated notably since 2021, with March 2024 experiencing a decade-high annual percentage growth. The trend reflects the complex interplay between housing affordability, mortgage rates, and supply of rental homes, as the UK housing market navigates a period of transition.

Rental prices in both Greater London and Central London were expected continue increasing in the period between 2023 and 2027, according to a forecast from October 2022. In Central London, the rental growth of residential properties was expected to be six percent in 2022, compared to four percent for Greater London. House prices in the United Kingdom were expected to experience more moderate growth rate.

The UK residential rental market is poised for significant growth, with forecasts indicating a cumulative increase of nearly 18 percent by 2029. This surge is expected to be front-loaded, with a robust eight percent rise anticipated in 2024. Rental growth has accelerated notably since 2021, with August 2024 experiencing a decade-high annual percentage growth. The trend reflects the complex interplay between housing affordability, mortgage rates, and supply of rental homes, as the UK housing market navigates a period of transition.

The prime property rental real estate market in Central London is expected to see an overall increase in rental rates during the five-year period between 2024 and 2028, according to a May 2024 forecast. Over the five-year period, the cumulative prime rental growth is forecast at 15.9 percent. Property price increase in Outer London is expected to be higher.

Prime rents in the major office markets in Europe are expected to grow year-on-year between 2024 and 2028, according to a May 2024 forecast. London City and London West End are expected to achieve the highest rental growth, at 3.5 and 3.4 percent per annum - more than double the average rental growth forecast for all markets. In Europe, central city offices had better investment and development prospects.

The prime property rental real estate market in Outer London is expected to see an overall increase in rental rates during the five-year period between 2024 and 2028, according to a May 2024 forecast. Over the five-year period, the cumulative prime rental growth is forecast at 16.5 percent. Nationwide, residential rents have soared since 2021, with the annual rental growth peaking at over nine percent in March 2024.

The industrial real estate sector is forecasted to see the highest annualized rental growth in the UK between 2024 and 2028, followed by West End offices. According to the forecast, industrial real estate rents are expected to grow by 3.2 percent per year in this period, while West End office space rents are expected to increase by 2.7 percent. When it comes to total commercial real estate returns in the UK, the industrial and retail warehousing sectors are forecast to outperform all other property types.

The UK residential real estate market, valued at approximately £360.27 billion in 2025, is projected to experience robust growth, driven by several key factors. Strong population growth, particularly in urban centers, fuels consistent demand for housing, while low interest rates and government initiatives aimed at boosting homeownership further stimulate market activity. The market is segmented into apartments and condominiums, and landed houses and villas, with each segment exhibiting unique growth trajectories. Apartments and condominiums, particularly in London and other major cities, are expected to see higher demand due to affordability concerns and lifestyle preferences, while landed houses and villas continue to appeal to those seeking more space and privacy, particularly in suburban or rural areas. Competition among major developers such as Berkeley Group, Barratt Developments, and others influences pricing and construction activity. While challenges exist, such as fluctuating economic conditions and rising construction costs, the overall outlook for the UK residential real estate market remains positive. The market's performance is also influenced by broader economic factors, such as inflation and employment rates, and is likely to see regional variations, with London and the South East generally commanding higher prices. The market's growth is expected to continue through 2033, with a compound annual growth rate (CAGR) of 5.75%. This growth will likely be influenced by factors such as evolving demographic trends (including increasing urbanization and family sizes), government policies impacting the housing market, and technological advancements impacting the construction and sales processes. International investment continues to play a significant role, especially in prime London properties. However, the market is susceptible to external shocks, such as changes in interest rates or economic downturns. Understanding these factors is crucial for investors and stakeholders operating within the UK residential real estate sector. Market analysis suggests continued demand for sustainable and energy-efficient housing, influencing the development of future projects. This comprehensive report provides an in-depth analysis of the UK residential real estate market, covering the period from 2019 to 2033. With a base year of 2025 and a forecast period spanning 2025-2033, this research offers invaluable insights for investors, developers, and industry professionals seeking to navigate this dynamic market. The report leverages extensive data analysis, covering key segments, emerging trends, and major players, to provide a clear understanding of market dynamics and future growth potential. High-search-volume keywords like UK property market, UK house prices, London property market, UK residential real estate investment, build-to-rent UK, multifamily UK, and UK housing market forecast are integrated throughout to ensure maximum online visibility. Recent developments include: May 2023: A UAE-based investment manager, Rasmala Investment Bank, has launched a USD 2bn ( €1.8bn) UK multifamily strategy for a five-year period to build a USD 2bn portfolio of UK residential properties. The strategy is focused on the UK market for multifamily properties through a Shariah-compliant investment vehicle, initially targeting the serviced apartment (SAP) and BTR (build-to-rent) subsectors within and around London. Seeded by Rasmala Group, the strategy is backed by an active investment pipeline for the next 12 – 18 months., November 2022: ValuStrat, a Middle East consulting company, increased its foothold in the UK by acquiring an interest in Capital Value Surveyors, a real estate advisory services company with offices in London. The UK continues to be one of the most established real estate markets worldwide and attracts foreign investors regularly. They are excited to expand their presence there to better serve all of their clients, both in the UK and the Middle East.. Key drivers for this market are: Demand for New Dwellings Units, Government Initiatives are driving the market. Potential restraints include: Supply Chain Disruptions, Lack of Skilled Labour. Notable trends are: Increasing in the United Kingdom House Prices.

The UK car rental market is poised for substantial expansion, increasing from USD 3,797.4 million in 2025 to USD 6,425.3 million by 2035. The market is expected to grow at a CAGR of 5.4% from 2025 to 2035.

Metric	Value
Industry Size (2025E)	USD 3,797.4 Million
Industry Value (2035F)	USD 6,425.3 Million
CAGR (2025 to 2035)	5.4%

Semi-Annual Market Update

Particular	Value CAGR
H1 2024	6.3% (2024 to 2034)
H2 2024	4.8% (2024 to 2034)
H1 2025	6.1% (2025 to 2035)
H2 2025	4.7% (2025 to 2035)

Per Capita Spending Analysis

Year	Population (millions)
2020	67.9
2021	68.3
2022	68.6
2023	69
2024	69.3

Year	Per Capita Spending (USD)
2020	18.82
2021	20.03
2022	22.68
2023	25.58
2024	29.03

Category-wise Insights

Segment (Car Type)	CAGR (2025 to 2035)
Economy Car	4.7%

Segment (End-Use)	CAGR (2025 to 2035)
On-Airport	5.2%

This page provides the results of an analysis carried out by the Greater London Authority of data on average private rents from Rightmove and forecast rent changes from Savills, resulting in estimated savings to renting households if rents were frozen at the levels of December 2022.

The Report Covers UK Residential Real Estate Market Overview and Trends. The Market is Segmented by Type (Apartments and Condominiums and Landed Houses and Villas) and by Key Regions (England, Wales, Northern Ireland, Scotland, and Other Regions).

The global online clothing rental market is poised for substantial expansion, increasing from USD 2,604.9 million in 2025 to USD 6,388.8 million by 2035. The market is expected to grow at a CAGR of 9.5% from 2025 to 2035.

Metric	Value
Industry Size (2025E)	USD 2,604.9 million
Industry Value (2035F)	USD 6,388.8 million
CAGR (2025 to 2035)	9.5%

Semi-Annual Market Update

Particular	Value CAGR
H1 (2024 to 2034)	8.5%
H2 (2024 to 2034)	9.9%
H1 (2025 to 2035)	10.5%
H2 (2025 to 2035)	8.4%

Per Capita Spending on Online Clothing Rental - Top 5 Countries

Countries	Population (millions)
United States	345.4
United Kingdom	67.7
China	1,419.3
France	64.6
Australia	27.0

Countries	Estimated Per Capita Spending (USD)
United States	3.25
United Kingdom	2.80
China	2.50
France	2.60
Australia	2.45

Country-wise Insights

Countries	CAGR (2025 to 2035)
USA	7.4%
Canada	4.7%
UK	6.8%
China	12.2%
India	18.6%

Category-wise Insights

Product Type	CAGR (2025 to 2035)
Ethenic Wear	7.3%

End User	CAGR (2025 to 2035)
Business-to-Consumer (B2C)	10.6%

Rental rates for London West End office real estate are forecast to see an annualized growth of 2.7 percent in the period between 2024 and 2028, according to a May 2024 forecast. Rents are expected to grow the fastest in 2024, at 2.9 percent. Over the five-year period, London West End office real estate was forecast to generate an annualized total return of 6.1 percent. That was lower than the average return on investment for all commercial property types in the UK.

The Price Index of Private Rents (PIPR) increased gradually since 2015 and reached a value of 121.8 in January 2025. That indicates a rental increase of 11 percent since January 2023, the baseline year when the index was set to 100. The rental rates for mainstream properties are forecast to continue to grow over the next five years.

The European student accommodation market is anticipated to reach a value of 26.21 million by 2023, expanding at a CAGR of 5.80% over the forecast period (2023-2033). The growing number of international students, rising urbanization, and increasing demand for affordable and comfortable accommodation options are key drivers of this growth. The market is segmented based on accommodation type, location, rent type, and mode of booking. Halls of residence and rented houses or rooms are the most popular accommodation types, while city centers and peripheries are the preferred locations. Basic rent is the most prevalent rent type, and online booking is gaining popularity due to its convenience and ease of access. Major companies in the market include Roomi, Ocxee, Amber Student, Nestpick, Spotahome, Casita, Housing Anywhere, Homelike, UniAcco, UniPlaces, and Yugo, among others. The United Kingdom, Germany, France, Italy, Spain, Netherlands, Belgium, Sweden, Norway, Poland, and Denmark are the key countries contributing to the region's growth. Recent developments include: October 2022: Unite Group leading developer of student accommodation, acquired 180 Stratford, a 178-unit purpose-to-build-to-rent property in Stratford, East London for GBP 71 Mn. This acquisition will enable the group to test its operational capability to extend its accommodation offer to young professionals In the Stratford market united group during October 2022 was operating 1,700 student beds with two student development in its pipeline., January 2022: Patrizia Se which is a leading partner for global real assets invested EUR 314 million in a student accommodation portfolio in Denmark. The acquisition was made from the pan-European private equity real estate investor Deutsche Finance International. The portfolio consists of purpose-built student accommodation (PBSA) assets in Copenhagen and Aarhus,. Key drivers for this market are: Increase in the Number of Restaurants and Bars in the Industry, Increase in the Number of Tourist Attractions and Activities. Potential restraints include: Inadequate Research and Development, Unpredictability of the Market. Notable trends are: Percentage of Young Adults in Education Affecting Europe Student Accommodation Market.

According to the forecast, the logistic real estate sector in the United Kingdom (UK) will see continue increasing until 2025. In 2022 and 2023, rental growth is expected to accelerate, reaching an increase of between 2.2 and 3.9 percent in 2023. Over the five-year period, London is forecasted to measure annualized rental growth of 3.2 percent. In recent years, the logistics real estate market has been growing in terms of both investment and take up. 2019 and 2020 were marked by the coronavirus (COVID-19) crisis and finalizing Brexit negotiations but they also accelerated some trends in the market. With the growth of e-commerce and the online grocery market, there will be increasing demand for near-urban warehousing.

This statistic shows the annual private rents forecast for England and London from 2013 to 2020. In 2020, the estimated annual rent for a home in London 22,249 British pounds (GBP).

Rental rates for London city office real estate are forecast to see an annualized growth of 1.8 percent in the period between 2024 and 2028, according to a May 2024 forecast. Rents are expected to grow the fastest in 2026, at 1.8 percent. Over the five-year period, London city office real estate was forecast to generate an annualized total return of six percent. That was lower than the average return on investment for all commercial property types in the UK.

Just as in many other countries, the housing market in the UK grew substantially during the coronavirus pandemic, fueled by robust demand and low borrowing costs. Nevertheless, high inflation and the increase in mortgage rates has led to house price growth slowing down. According to the forecast, 2024 is expected to see house prices decrease by three percent. Between 2024 and 2028, the average house price growth is projected at 2.7 percent. A contraction after a period of continuous growth In June 2022, the UK's house price index exceeded 150 index points, meaning that since 2015 which was the base year for the index, house prices had increased by 50 percent. In just two years, between 2020 and 2022, the index surged by 30 index points. As the market stood in December 2023, the average price for a home stood at approximately 284,691 British pounds. Rents are expected to continue to grow According to another forecast, the prime residential market is also expected to see rental prices grow in the next years. Growth is forecast to be stronger in 2024 and slow down in the period between 2025 and 2028. The rental market in London is expected to follow a similar trend, with Central London slightly outperforming Greater London.