The report by CBRE highlights several key changes to the residential, Build to Rent and co-living sectors.
Build to Rent and co-living are set to maintain occupier demand, partly as a result of strong rental growth which will mitigate yield expansion in the sectors.
However, the rental market is set to remain strong and versatile, as will investor interest in the sector; the supply and demand imbalance contributing towards this.
Despite this, rent prices may increase due to wider inflation, particularly for renters with inflation-linked tenancy agreements.
Operators and rented property owners will need to be wary of this, though, as the UK continues to struggle under the Cost of Living Crisis.
As investor interest in Build to Rent an co-living thrives, the challenging sales market will also bring opportunities for single-family Build to Rent investors. High build cost inflation will affect this market.
Activity in the housing market is set to reduce this year, as sales drop below their long-term average.
Regardless of the challenges that the residential sectors will face this year, the report by CBRE indicates that the future is looking bright for Build to Rent and co-living investors.