UKREiiF 2025

UKREiiF: One Year On – Market Signals and Sector Momentum

Reflecting on last year’s UKREiiF, the political narrative was dominated by the expectation that Labour would emerge as the UK’s new leading party.

A key pillar of their agenda focused on stimulating national economic growth through ambitious housing and regeneration initiatives. Central to this was a pledge to streamline the planning system and deliver 1.5 million new homes within four to five years.

Since then, the living sector has emerged as the most attractive area for investors, underpinned by the persistent imbalance between housing supply and demand.

However, recent data highlights a concerning slowdown in delivery, particularly in London. The city is far off its housing targets. According to a report from Molior, only 1,210 of units started on site in London in Q1 2025 (the lowest quarterly total recorded since Q1 2009),  and just 7,100 completions are expected during the 24 months of 2027 and 2028, well below the 88,000 per year target of London.

A range of factors are driving this decline. Viability issues, rising construction costs, softening sales, and the mandated 35% affordable housing threshold have all contributed to dampened developer appetite. Compounding these challenges are the new Building Safety Act gateway requirements, which are introducing significant delays—particularly for developments exceeding 18 metres in height.

Conversely, conditions outside of dense urban areas are beginning to improve. Planning reforms are gradually facilitating more activity, especially within the single-family housing market, which is drawing increased investor interest due to fewer regulatory hurdles and reduced exposure to the current safety oversight regime.

Beyond residential, the logistics and industrial sectors continue to demonstrate resilience. Investor focus is shifting towards multi-let and last-mile assets, where demand remains strong, and away from the larger ‘big box’ logistics facilities that have dominated in previous cycles.

Meanwhile, the macroeconomic environment is showing signs of potential support. The Bank of England’s recent 25-basis-point rate cut—alongside signals that further reductions may follow—has created renewed optimism. For asset managers, this presents opportunities to unlock value through refinancing and capital redeployment into higher-performing assets.

Despite transaction volumes remaining below historical norms, several large-scale portfolio bids signal renewed confidence in the market. Should momentum continue to build, we could see a significant uptick in activity in the second half of the year.

What do the team expect from UKREIIF?  Well at the time of MIPIM earlier this year there was a lot of talk around tariffs and the Trump effect, and the uncertainty that brought at a time when everyone in the industry felt ready to kick on from the lows of 2024. This is still rumbling on but perhaps in somewhat of a normalised manner now than it was during the initial shock and awe of his announcements. Hopefully after all the fall out it will mean the UK is still seen as a relatively stable and attractive market with some appealing fundamentals for investors. We have certainly seen strong appetite from the larger overseas pensions funds and sovereign investors willing to commit to the UK in the last year.

Expert support for global real estate investments

We offer expert legal and ongoing administration to the real estate sector, providing tailored solutions to help our clients navigate the complexities of property investment, development, and transactions.

With extensive experience, we support investors, developers, asset managers, and financial institutions with comprehensive legal, consulting and governance services.

Utilising our specialist knowledge across multiple jurisdictions, we ensure smooth cross-border transactions and compliance with evolving market regulations.

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Our team of lawyers provides seamless support for private equity structures, holding companies, and employee benefit trusts, working closely with our governance services team.

With extensive experience, our listing sponsor and agent team facilitates debt listings on The International Stock Exchange and the Cayman Islands Stock Exchange, ensuring a smooth and efficient process.

Equipped to act swiftly and effectively, our offshore litigators and specialist recovery teams resolve real estate disputes and distressed situations with precision.

How we help you

• Comprehensive legal and governance support throughout the real estate lifecycle
• Structuring and executing transactions with efficiency and precision
• Managing risks and ensuring compliance with evolving legislation
• Advising on innovative investment structures and financing solutions
• Supporting asset managers with strategic legal counsel

Contact us

Please contact us if you would like to speak to a member of the team or reach out to the contacts listed on this page directly who will be in Leeds for UKREiiF.