The UK institutional Single Family Rental (SFR) market is a sector set for growth. Our paper highlights market forecasts, investment characteristics and how investors can approach this emerging sector.
- This UK SFR market is small, (around 10,000 units, Savills, JLL (2024)), but part of a huge and highly disaggregated private rental market of some 5 million units (Savills 2024).
- The scope of opportunity for SFR is considerable amid surging demand from a greater pool of long-term renters. Savills (2024) estimate the UK SFR market size will reach 115,000 to 200,000 SFR units (£23bn to £56bn) within a decade.
- The investment characteristics of SFR are high quality, long-term income streams supported by demand-supply imbalances producing income growth that should at least match inflation.
- Newly delivered SFR houses tend to have high EPC ratings, generating demand through offering renters energy efficient homes and typically lower utility bills.
- We draw on information from the established US market, the UK listed market and our own direct experiences in the UK.