Daniel Austin, CEO and co-founder at ASK Partners, said:
After a year under the new government, investors remain frustrated by the lack of meaningful planning reform and the limited incentives available to drive development. Our research shows that planning delays, political uncertainty, and fiscal unpredictability continue to act as major barriers – despite manifesto pledges to accelerate housebuilding. Nevertheless, over half of investors plan to increase their real estate allocations over the next 12 months, signalling confidence in the sector’s underlying fundamentals. Unsurprisingly, given the rapid global digitisation and growth of AI, data centres are expected to offer the greatest investment opportunity of all asset classes. Warehousing and logistics, and later-living housing also stood out as particularly attractive prospects along with build-to-rent, co-living and student accommodation. Real estate debt remains in high demand from investors seeking stable income, capital preservation, and a degree of insulation from wider market volatility. “To truly unlock the potential of the UK property market, investors want to see planning reform prioritised, alongside tax incentives for developers and policies that attract international capital. Delivering on these fronts would help accelerate development, tackle the housing crisis, and ensure real estate continues to drive economic growth rather than hold it back.”
