Changing demographics and evolution in technology are having a significant impact on the future of UK housing. Many are hoping that the nation’s housing crisis will be alleviated thanks to technological innovation. But five trends are on the rise and can’t be ignored. Combined, these five trends are meant to shape the future of UK housing market:
Factory-built homes are on the rise
A lot of talk focused on modular homes, otherwise known as prefabricated housing. These affordable properties are assembled in factories across the UK and then delivered to the client’s site.
Many regard modular homes as a solution to the housing crisis, especially in communities where space is at a premium. Lower costs make it possible to offer high-quality affordable homes at around 80% of the local market value. A potential downside is the comparatively small size, but the waiting list for a modular home from the pre-fab company Pocket is still over 35,000.
Proptech can make land available while reducing costs
Property technology, or Proptech for short, is showing signs of imminent ground-breaking innovations. For example, software firm Land Insight is obtaining valuable data from the Land Registry and local government to help developers pinpoint potential sites quickly and at less expense than traditional methods.
Build-to-rent can help those who can’t afford to buy
While a relatively new concept in the country, build-to-rent has the potential to improve the future of UK housing. There are presently 83,650 such homes completed or in the planning stages across the country.
Because a BTR development is intended for renters, many of them have perks such as gym membership and Sky TV, which can mean higher prices, but developments in the UK often have affordable home quotas. There are also no letting agency fees and rents of more than three years are only increased by inflation, not landlord whim.
Blockchain could change the way property sales are carried out
Blockchain technology underscores Bitcoin. Some developers are accepting rental payments in Bitcoin, and the potential property-related applications for blockchain go beyond this. ClickToPurchase, for example, is a site what allows people to exchange legal contracts online, and such a technology could be used to conduct property sales and related legal transactions.
Rent controls are ruled out
Rent controls are another area with the ability to affect the future of UK housing. The Conservatives have balked at introducing them: Housing and Planning Minister Alok Sharma called them “Marxist” at ResiConf, the biggest property conference in the UK, and vowed that they would not take effect in this parliament. Instead, the Government would focus on building more rental homes and completing its White Paper.
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