Market Size of UK Residential Real Estate Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 360.27 Billion |
| Market Size (2029) | USD 476.46 Billion |
| CAGR (2024 - 2029) | 5.75 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UK Residential Real Estate Market Analysis
The UK Residential Real Estate Market size is estimated at USD 360.27 billion in 2024, and is expected to reach USD 476.46 billion by 2029, growing at a CAGR of 5.75% during the forecast period (2024-2029).
- Since the coronavirus outbreak, demand on the residential property market has been strong, which has in turn affected house prices around bigger cities. The limited availability means competition among home buyers has been higher and the prices have been rising at a faster pace. In November 2021, the average house price in London reached almost 520,000 British pounds and was almost three times as high as in North East. Most households in the UK own their homes and rely on a mortgage for home financing. Comparing homeownership rates in different European countries, it can be seen that the UK ranks close to the Netherlands, Sweden, and Denmark, with 65.2 percent.
- Since 2014, the quarterly number of housing completions in England has fluctuated between approximately 17,000 completed housing completions in the second quarter of 2020 and 53,000 housing completions. Both the dramatic fall and the consequent increase could be attributed to the coronavirus (COVID-19) pandemic that unfolded in 2020. In the second quarter of 2022, there were 46,250 completions.
- London had nearly 3,500 completed build to rent homes less than the rest of the UK combined in the second quarter of 2022. Build to rent refers to homes that are built specifically for renting rather than for sale. They differentiate from traditional rent homes with their focus on the provision of as services, i.e. professional on-site management, shared spaces, work zones, fitness centers. In the second quarter of 2022, there were roughly 44,500 build to rent homes in planning in London and 71,400 in the rest of the UK. In the past three years, the build to rent sector has been growing in the UK.
- House prices vary widely in the United Kingdom (UK), but housing in certain cities and counties is substantially pricier than in others. Surrey, for example, concentrated seven of the most expensive towns to buy a home, including Virginia Water, Cobham, and Richmond. With an average house price of over one million British pounds as of January 2022, housing in these towns cost roughly four times the national average.
