Residential Transactional and Living Markets
Residential Investment
Overview
Q2 2025 has seen the positive momentum from the previous quarter continue across the UK residential investment market. Our team has maintained a strong run of securing new instructions, with the pipeline further strengthened by honest, market-driven advice that is increasingly being accepted by vendors. The importance of accurate pricing and a tailored marketing strategy remains paramount, consistently proving to be the catalyst for successful sales.
Student Housing
Overview
Summer 2025 has proven to be a pivotal period for PBSA operators, with heightened pressure to drive bookings for the 2025/26 academic year and maintain stable occupancy levels. Market sentiment suggests a softening in occupancy, with Unite Group reporting reservations across 85% of its 68,000-bed portfolio—down from 94% at the same point in 2024. At a recent industry conference, discussion pointed to the possibility that occupancy is settling into a ‘new normal’ following Covid with current leasing velocity more in line with the 2021/22 and 2022/23 cycles.
Residential Development
The underlying tone of the residential development market remains cautious, despite some glimmers of positivity towards the start of Q2 2025. Build cost inflation has reduced providing clarity around pricing, however there are still major headwinds, a key factor being regulatory pressures. The most significant of these is the Gateway process and the delays this is causing to the build programme for sites. High rise development over 18 metres outside Zones 1 or 2 in London remain very difficult to make financially viable, and we are seeing significant demand for low-rise flatted and housing schemes.