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FUTURE LIVING INSIGHTS INTO THE TRENDS RESHAPING UK PROPERTY
1 LO R E M I P S U M
CONTACTS
Guy Robinson Stephanie McMahon
Head of Residential Head of Research
+44 (0)20 3944 8404 +44 (0)20 3944 8428
guy.robinson@struttandparker.com stephanie.mcmahon@struttandparker.com
Louis Harding Vanessa Hale
Head of London Residential Head of Residential Research
+44 (0)20 3944 9113 +44 (0)20 3944 8883
louis.harding@struttandparker.com vanessa.hale@struttandparker.com
Kate Eales Mark Dorman
National Head of Lettings Head of London Residential Development & Investment
+44 (0)20 3944 7801 +44 (0)20 3944 8717
kate.eales@struttandparker.com mark.dorman@struttandparker.com
3
WELCOME
Change is happening all This is why, in Future Living,
around us . Technology is we explore a number of
altering our lifestyles in ways burgeoning trends that are
we couldn’t have imagined just having an impact on the
a few years ago. Environmental residential property market
issues and sustainability are now, and will continue to do
top of the agenda for an so in the coming years.
increasing number of people. Each short essay examines
Our population is growing – a key theme and comprises
and ageing. And there is insightful comments from a
an undeniably urgent need range of expert perspectives
to provide more homes. to help you make sense of
These factors will have a the way we live and what this
profound affect on property means for the property sector
values. So whether you’re – both today and tomorrow.
a homeowner, a landlord or We hope you enjoy reading
an investor, it is important Future Living.
to keep track of these
evolving social, economic GUY ROBINSON, HEAD OF
and technological shifts. R E S I D E N T I A L , S T R U T T & PA R K E R
CONTENTS
4 8 12 14 18 20
Connect more The future Trendspotting Meet Generation Short-term Paint the
The smart home is modular Eight key trends Downsize thinking town green
is now a reality – Why today’s that are set to More retirees are The sharing More people than
but will the UK’s factory-made have an impact swapping large economy has ever live in our
networks be homes are a on residential homes for smaller opened up a cities. Can urban
ready to handle world away property properties – range of short-let farming help
the growing from the prefab and where they opportunities for make feeding
demand for data? housing of old want to live is property owners them more
changing, too sustainable?
4 SMART HOMES
Imagine that you’re woken
at 7am by your connected radio
playing your favourite playlist.
Then, after 15 minutes of snoozing, intimate, personalised lifestyle is
you see the room flood with light what’s likely to help sell the next
as your connected shutters open generation of smart homes.
to let in the sun. As you rise, your The concept of the connected
connected thermostat is warming home isn’t new, but it’s only recently
your towel ready for your shower, that it has started to become reality.
and your connected coffee machine According to PwC, about 30% of
is busying itself with the 7:30am us now plan to buy a smart device
brew. A quick check in the for the home – up from 14% in 2016
(unconnected) mirror and you’re – suggesting that the technology
almost ready to face the day. is moving out of ‘early adopter’
While it’s not exactly the utopian territory. And last year, Marc
vision of the 21st century as we Allera, CEO of BT’s Consumer
pictured it in the 1960s, this division, predicted that the
average household will have 50
connected devices by 2023.
£10.8
But are the UK’s telecoms billion
networks ready to cope with the Predicted spend
demand for bandwidth that this on smart home
CONNECT will bring? How is the housing
market set to adapt? And is the
devices in 2019
Source: PwC
mainstream desire for connected
MORE homes here just yet?
Regarding the last question,
the answer is ‘perhaps’. Only one
in five people, says PwC, expects
a connected-home device to have
a positive impact – but perceptions
of value tend to improve once
people have bought one. So it’s not
technology that sells a connected
From voice-activated home; it’s an understanding of how
it can meet our basic human needs.
speakers to internet-
The connected home has been
enabled security seen in the past as ‘slightly pointless
cameras, smart devices technology for technology’s
are increasingly part of sake’, notes David Mattin, Global
the furniture in many Head of Trends and Insights at
British households. But TrendWatching – a reputation
as the connected home caused by white-elephant goods
such as $10,000 smart fridges.
becomes ever more
But the uptake of virtual assistants
data-hungry, how will such as Alexa and Siri shows things
the UK’s networks cope? are changing, he suggests. »
Words Chris Alden
5
6 SMART HOMES
22%
nt
12%
a
ist
ss
ea
The user experience is what
om
g
9%
in
matters. ‘People obsess over things
y
at
lh
rit
g
11%
he
in
cu
ita
like their wake-up routine – small ell
se
art
ht
Dig
rb
lig
37
personal moments in their days,’ oo
art
Sm
36
%
art
Sm
7% speakers
d
41%
says Mattin. ‘They can become
%
eo
Sm
41%
rt
36
17%
Vid
consumed by the perceived quality
%
a
34
Sm
%
of those moments.’
Perhaps it’s people for whom
these moments are most precious
who will become the next wave Will own in five years
of adopters for connected homes.
Currently own
These may be time-poor, work-
focused, ambitious people who Household takeup of smart devices in 2018
see the home as a sanctuary from Source: EY
the chaos of the world outside.
Over time, says Mattin, the
experience in the connected home
will become less transactional
and more emotional – less about
refilling the washing powder and
more about needs such as health,
wellness and companionship.
Two immediate obstacles stand
14% 30%
in the way of this vision. One is 2016 2018
privacy, with the ‘techlash’ being
a growing media trend of the past
couple of years. But Mattin argues
that if the trade-off is right, people
will continue to exchange privacy
for the right level of personalisation. Demand for smart devices
Source: PwC
Just as thorny is the question of
connectivity infrastructure. If you
already have high-speed broadband,
then in the short run, the smart
home is likely to mean a relatively
small bump in required bandwidth.
A security camera such as the
2025: 15 million
premises connected to full fibre
Google Nest Cam IQ, for example,
requires an upload bandwidth of
between 0.8 and 4Mbps, depending
on the selected quality mode –
2027: 5G
deployed to most of UK population
though as it’s always on, it will
eat through 100 to 400GB a month,
so unlimited data is a must. Yet
multiply the number of cameras,
2033: 100%
full-fibre coverage across all parts of the country
and your connected home could
become a bandwidth-hungry hub. UK government telecoms targets
That’s small comfort to the 2% Source: Department for Digital, Culture, Media & Sport7
Good morning Paris: towards the personalised home
The future of connected homes lies in solutions personalised to habits, says
Antoine Robin, Innovation Manager and Project Director at BNP Paribas Real
Estate, which has recently launched Issy Préférence, a 60-unit connected
apartment building on the outskirts of Paris.
A connected wake-up routine, he explains, is already compatible with an
Issy Préférence home, with shutters, heating and coffee machine, for example,
working in synchronicity. Other modes include ‘departure’, which prompts
the building to close blinds, switch off lights and activate security features.
Issy Préférence allows you to incorporate devices such as connected
thermostats, shutters, doorbells, TVs, lights, washing machines and more
in a tech-agnostic, future-ready environment that you control with your
smartphone. ‘We installed the technology at no extra cost to residents, and
the result is that almost 75% of them use the solution regularly,’ Robin says.
of UK homes and offices – mostly automation will require, according and wireless access points. A
rural – who get a download speed to Rahim Tafazolli, Director of the property’s connectivity will become
of less than 10Mbps, according to 5G Innovation Centre and Regius part of its USP, alongside aspects
Ofcom, or the 5% who can’t access Professor of Electronic Engineering such as the proximity of a railway
super-fast broadband (30Mbps at the University of Surrey. station or an outstanding school.
download speed). The picture is ‘If you have video cameras or Ultimately, because connected
complicated by the fact that, video robots at home, and control them homes have the power to serve
aside, many devices connected to remotely, 5G will enable that basic human needs, it means they
the internet require only narrow automation aspect,’ Professor are here to stay, argues Mattin.
bandwidth – but come with Tafazolli says. ‘If you are controlling a ‘The earliest adopters have been
challenges of their own. robot, it has to be very accurate and young people interested in tech,’
Take the mains-powered internet reliable. That’s what 5G brings.’ he says, ‘then we move to affluent
radio in your kitchen. It’s happy What does this mean for professionals in metropolitan areas,
enough on your existing Wi-Fi. property? The likelihood is that as it and it will spread from there.’
A battery-powered sensor in your develops, the connected home will But he adds, in the long term,
loft conversion’s skylight, however, become yet another factor in what there’s no inherent limit to the
might struggle with Wi-Fi’s power might be termed an ‘infrastructure number of connected devices:
demands, and perhaps also its premium’ for properties in areas ‘All homes will have these
range. To solve these issues – and with high population densities, technologies, [just as] they
avoid a rewire in existing homes – where there will be more fibre links now have a phone or a TV.’ ◆
new wireless networks are being
developed that promise ‘low power,
wide access’ (LPWA) suitable for
internet-enabled devices, alongside
a new iteration of Wi-Fi.
A property’s connectivity
The national landscape will evolve,
too. The government hopes that will be part of its USP, alongside
5G, which should offer gigabits-per-
second bandwidth, will be deployed
to most of the UK by 2027. And
proximity to a railway station
5G can enable the mission-critical
wireless networking that future or an outstanding school8 MODULAR HOMES
THE
FUTURE
IS
For some, the word prefab
conjures images of the mass-
produced stop-gap houses
hastily thrown up in post-war
Britain. But in light of new
materials, manufacturing
and construction methods,
is it time to rethink our idea
Housebuilding
of a factory-made home?
in England
Words Clare Dowdy
Annual target
300,000
New homes built in 2017-18
222,190
Modular homes built in 2017-18
4,000-6,000
Sources: Ministry of Housing,
Communities & Local Government,
Legal & General Modular Homes9
25%
Potential
reduction in
costs for homes
constructed off
site compared
with traditional
methods
Source: Ministry
of Housing,
Communities &
Local Government
A boom in prefabricated homes The components are made in
may have lessened the post-war factories around the country, some
housing crisis, but the proliferation of them owned by property developers
of quickly built, poorly made houses such as Urban Splash. The parts are
gave the technique a bad name. It’s either delivered to a distant location
a fact lamented by Peter Murray, or, in some cases, manufactured on
Chairman of New London Architecture, or near the building site.
in the organisation’s Factory-Made The latter is happening in Leeds.
Housing report: ‘The failures of the Developer Citu is making timber-framed
1960s were a huge setback for the housing in its own 7,400 sq m factory
concept of factory-made housing.’ just a few hundred metres from its site
But half a century or so on, on the city’s South Bank, and will put
offsite construction in the UK is up 520 low-carbon homes there.
having a renaissance. Thanks to For Chris Thompson, Citu’s Founder
modern technology, government and Managing Director, it’s all about
encouragement and increasing interest consistent quality. ‘We want to get to a
from developers, it is starting to fulfil its position of defect-free houses,’ he says.
potential. More and more homeowners Many in the industry echo Thompson’s
and tenants are being introduced to belief that MMC’s biggest selling point
30%
Decrease in construction
the benefits of living in these buildings.
The fledgling sector has a multitude
of monikers: prefab, factory-made,
is its potential to improve standards.
‘As technology and manufacturing
combine forces, the new customer
modular, MMC (modern methods of proposition will far outweigh doing
time for homes made
off site compared with
construction). These terms refer to a business as usual,’ says Mark Farmer,
traditional methods host of offsite building methods, from CEO of Cast Consultancy and author
Source: Ministry of Housing, the creation of a window or wall to a of the government’s 2016 review of the
Communities & Local Government frame, pod or entire volumetric floor. housing industry, Modernise or Die. »10 MODULAR HOMES
SWEDEN
JAPAN 14-20%
USA 7%
Some offsite developers offer
2%
UK a level of customisation that is rare
with conventional construction. At
Estimated proportion of new Urban Splash’s House developments
properties that are factory-made in Manchester, purchasers get a
Source: New London Architecture standardised shell with a staircase,
kitchen and bathroom pod; they can
then choose sizes, living spaces and
layouts in a variety of arrangements.
In contrast to continental Europe,
large-scale factory-made housing
has been slow to get off the ground
in the UK. But it’s now the disruptive
force in housebuilding, and some
%
90
of those factories are starting to
deliver in greater numbers.
Financial services giant Legal &
General has built a 51,000 sq m
factory near Selby, North Yorkshire.
This has the capacity to produce
‘It will be one that is underpinned of Planning at Strutt & Parker, about 10,000 modules a year, which
by an “off the shelf” level of price referring to the potential for lower equates to around 3,500 homes.
certainty, more customisation and energy bills. ‘But they also want to Ilke Homes manufactures offsite
choice, high-quality architecture have a lifestyle that fits with their affordable homes in partnership
and design, and smart technology sense of social responsibility.’ with housing associations and
embedded into homes. All this will These homes are not just better developers. Using MMC, its 25,000
deliver a higher technical build made, they’re also quicker to build sq m factory in Knaresborough,
quality and a better occupational – good news for owners and buyers. North Yorkshire, builds eight
experience than a traditional build. Traditional onsite construction – modular homes a day. The firm aims
Customers will vote with their feet.’ with its ‘wet trades’, such as to build 2,000 new homes a year
Nicola Kelly, Partner at niche bricklaying – are at the mercy of within the next 24 months, with
property venture Cube Haus, agrees: the weather, delays in transporting plans to scale up to 5,000 homes
‘The homebuyer can be assured materials, and poor communication a year in the next five years.
that quality control processes in the between multiple contractors. While MMC is getting plenty of
factory mean that errors, redesign ‘These are all very frustrating to attention, McLarty points out that
or correction can be done as the homebuyers, with the resultant costs ‘the uptake is still not yet there’.
work proceeds and not at the end, of interim accommodation while However, Farmer believes ‘we’re
where issues are usually hard to waiting for the project to finish,’ finally entering the period when
spot and only manifest themselves says Kelly. Offsite construction, on construction begins to transform
once the property is in use.’ the other hand, reduces the noise, itself’. If that’s the case, then perhaps
Citu’s houses at its Climate dust and nuisance to neighbours. it’s time to reclaim the term prefab. ◆
Innovation District in Leeds are
not the only ones trumpeting
their sustainable credentials.
‘Increasingly, homeowners are
interested in being eco-friendly
We want to get to a position
from an economic standpoint,’
says John McLarty, National Head of defect-free houses11
Today’s offsite-
manufactured homes
are characterised by
their high quality,
precision engineering,
digital design
and eco-efficient
performance...
truly 21st-century
homes
Nicky Gavron AM, Chair of the London
Assembly’s Planning Committee
10%
Factory-made housing accounts
for a small proportion of the homes
built in London each year – less than
10% of total construction output
Source: New London Architecture12 PROPERT Y TRENDS
The micro wave Electric dreams Green attitude Smarter renting
Hong Kong is famous for its ‘micro flats’ – Electric cars have The increasing An American
and now they’re taking hold in the UK. proved popular in awareness of revolution is quietly
Despite being controversially tiny – they the luxury vehicles needing to take taking shape in the
are smaller than the 37 sq m (for a studio market and among action to save the UK as work gathers
flat with a shower) that planning guidelines taxi drivers in our planet appears to pace to construct
suggest – almost 8,000 were built in 2016, cities’ congested be having an effect, purpose-built US-
according to research from Which? streets, but they Strutt & Parker’s style ‘renting-only’
magazine, after the government relaxed have yet to go truly latest Housing developments all over
permitted development rules in 2013. mainstream. That is Futures report the country. Known
Micro flats offer just enough space to going to change soon, reveals. The most here as ‘build to rent’,
sleep and watch TV in and include a basic says Deloitte, which sought-after they are set to change
bathroom, fridge, microwave and kettle – predicts that the cost service among new the rental sector by
but residents typically use a communal of electric and petrol property buyers offering professionally
kitchen and dining area. car ownership will is now recycling, managed, high-spec
Most of the developments have been in converge in 2024. beating porters, apartments with
London. For example, the Collective offers In addition, the housekeeping amenites such as
micro homes for short- and long-term lets government is and security. gyms or concierge
in its ‘co-living’ developments in Canary preparing legislation services. Tenants pay
Wharf and northwest London. that will make it a a monthly fee that
legal requirement includes all bills and
for new-builds in have longer, more
England to feature secure tenancies,
integral electric- with no deposit or
Homes smaller than 7,809 vehicle charging
points from 2020.
upfront charges.
37 sq m built per year
Source: Which?/
Ministry of Housing,
Communities
& Local 5,605
Government
2,871
2,337
2013 2014 2015 2016
£976
Estimated cost
to install a
charging point
outside a
£2,040 new-build home
Estimated cost to
Source: Department
retrofit a charging
for Transport
point outside an
existing property13
Property sales Yo-Yo House
Homes with flexible
No key,
no problem
Hot in the city
TV shows such
walls and layouts Door locks that use as Escape to the
could take just are the next big
trend, according to
your smartphone
and/or fingerprint to
Country imply that
we all want to live in a
the latest Housing open your front door, more bucolic location,
three weeks Futures report from
Strutt & Parker. It
rather than keys, are
now available from
but research by Strutt
& Parker suggests
highlights how, as companies such as otherwise. Urban
people stay put Klevio and Yale. living is becoming
for longer, we will Keyless technology more desirable, with
increasingly need has been around 15% of respondents
Speedier deeds homes that can since the early to a 2017 Housing
Despite its paper-bound history of deeds, be easily adapted Futures survey saying
2000s, but the
the Land Registry is going digital and is to suit changing that they aspire to
recent quantum
leading a charge to make the UK a world- circumstances and live in a city – up
leap in smart home
beater in home conveyancing technology. accommodate from 9% in 2013.
equipment has
Its Digital Street project will, its latest pilot multi-generational ignited the market.
has suggested, help cut the time it takes households. This In particular, keyless
to buy and sell a property from the current means movable walls doors are heralded
three months to three weeks. and easy access to as a solution to the
The agonising wait between offer and pipes and cables to problem of delivering
exchange is one of the most frustrating enable a wholesale goods when
15%
periods during the homebuying process, as redesign of a residents are not at
solicitors, paperwork, money and patience property’s interior. home, as many of
disappear into a black hole and purchases
them also enable
are at risk from gazumping and gazundering.
remote locking
The Land Registry is working with more
and unlocking.
than 250 organisations – including law
firms, banks and payment and identity
technology startups – and other property
9%
companies, and says it expects the project
to bear fruit in between two and five years.
2013 2017
We highlight eight key shifts
in lifestyle and technology
that are changing the way
we live in and sell our homes
Words Nigel Lewis
TRENDSPOTTING14 DOWNSIZI N G
As they approach retirement, quarter require easier accessibility,
many people find themselves such as lateral living rather than
asset-rich – perhaps owning a multiple staircases. Some 23%
family house that, now their would like a smaller house with
children have grown up and moved flexible space for guests or family
out, is bigger than they need – when it’s needed. Also, a fifth of
but relatively cash-poor. So what’s respondents were seeking a smaller
the next step? For an increasing garden, which suggests that a
number, the answer is to downsize. balcony or shared and managed
Selling a larger home to move into open space may be preferable.
a smaller one allows homeowners The idea of downsizing to obtain
to release equity to pass to younger the ideal home for later life is gaining
generations, invest to fund the ground. A 2018 study by financial
longer-term future, or simply spend services group Legal & General
on luxuries such as cars or holidays. found that 39% of UK homeowners
But downsizing can offer more aged 55 and over have downsized
than simply financial benefits. It or are considering such a move –
can be an act of personal liberation, up from 32% three years previously.
allowing older people to return to Not only would downsizing make
a lifestyle they put on hold during larger homes available for those
decades of parenthood, career who need them, but the downsizers
progression and carrying the would themselves secure a larger
responsibilities of a family home. lump sum to use towards their
In other words, downsizing can enhanced lifestyle. The Prudential
be the start of a new chapter, rather says a typical downsizer will net »
than the end of one. ‘There’s a
generation of people with good
levels of disposable income who
MEET
want a lifestyle that reflects this,’
says Stephanie McMahon, Head
of Research at Strutt & Parker.
GENERATION
‘Downsizing can make it happen.’
In 2017, Strutt & Parker’s Housing
Futures: Platinum Generation
research revealed what downsizers
want in their next home to improve
their lives. For example, a third want DOWNSIZE
lower maintenance and just over a
Many older people are choosing to
Homeowners aged 55- downsize to unlock equity, move to their
plus who have downsized dream home and begin a new chapter
or are considering it in later life. But forget rural idylls or
Source: Legal & General coastal seclusion – this group of silver
city-slickers wants something more
Words Graham Norwood
39%
32%
2015 201815
16 DOWNSIZI N G
into high-quality apartments with
a Soho House members’ club and
What the over- gym, 24-hour concierge, private
65s want from cinema, lounge and lobby.
their next home ‘These facilities aren’t aimed
Source: Strutt & Parker
solely at downsizers, but a lot have
£112,000 after buying a smaller bought there because they can see
home, with one in nine making more the quality of life the location
than £200,000. Owners of larger offers,’ Curtis says. ‘The scheme is
properties would in turn release close to two tube stations serving
33% even larger sums. three different lines, an overground
Lower maintenance In years past, such windfalls station and a Westfield centre,
might have prompted people to and is conveniently located for
retire to a coastal haven or country Heathrow and the West. If you
retreat. Today, however, a growing want an active lifestyle, you want
number want to move to London. to live somewhere like this.’
26% In the capital, active retirees can Another scheme that is set to
Improved security
enjoy a rich cultural life alongside be popular with the downsizing
the infrastructure of excellent demographic is Triptych Bankside,
transport, super-fast broadband, which is being launched this autumn
hi-tech fitness facilities and and is due to be completed in 2021.
23% well-resourced healthcare. Close to the Tate Modern, Borough
A smaller property In addition, as the concept of Market and Waterloo station, it’s
‘older living’ changes, moving to perhaps the quintessential central
or remaining in London makes it London destination for downsizers.
easier for many people to continue ‘A further advantage is that
20% working – as the dividing line buyers can plan their move to
A smaller garden between work and retirement is far a smaller but far more central
more blurred now than in the past. apartment here,’ says Mark Dorman,
‘The cliff edge of retirement is Senior Director and Head of London
today more of a gentle incline, with Residential Development &
11% people phasing out of work,’ says Investment at Strutt & Parker. ‘They
Close to amenities Jon Greer, Head of Retirement commit to buy off-plan now, and
Policy at investment solutions this usually means an uplift in value
consultancy Quilter. ‘Government even before the purchaser moves in
predictions show a massive 50.5% – plus, there’s a chance to have a
Proportion of of 65- to 69-year-olds will be wider choice of fixtures and fittings’.
UK population economically active in 2067, It’s all a far cry from the idea of
compared to 10.2% in 1992.’ the thatched cottage or seaside
aged 65-plus So what is the most liberating kind semi, but retirees and downsizers
Source: ONS
of property for the newly invigorated in the 21st century are making a
20.7% downsizer to enjoy in London? break from the past.
‘Some locations, especially ‘Whatever their age, people want
18.2% new developments, are ideal for to live in places rather than buildings,’
15.9% downsizers who don’t want to adds Dorman. ‘We demand not
compromise on quality or facilities just rooms, but facilities, services
but simply need less space and and a lifestyle of the highest quality.
no garden to manage,’ says Sarah And now we can get it.’ ◆
Curtis, Director of London New
Homes at Strutt & Parker.
She cites Television Centre, the
2007 2017 2027 former BBC TV headquarters in west
(projected) London, which has been remodelled17
There is a need for
housing that provides
security, accessibility,
community and
care for individuals
as they move into
later life... Successful
downsizing is about
choice and not social
obligation
Strutt & Parker Housing Futures: Platinum Generation
22%
More than a fifth of people who
have downsized or are considering
it say that it’s best to do it when
aged between 65 and 69
Source: Legal & General18 SHORT LETS
£ £ £
£ £
£ £ £
SHORT-
£
TERM £
THINKING £
How have short-let
marketplaces such as
Airbnb and the wider
sharing economy they’ve had on people’s attitudes to
changed the way their homes. Many homeowners now
we think about our realise that they can make extra
properties – and what income from their vacant property
or spare room – a shift driven by
opportunities does this
both financial and lifestyle trends.
new rental landscape ‘People are beginning to recognise
offer for homeowners? that leaving a home sitting empty
Words Nigel Lewis From being a little-known is a missed benefit,’ says Merilee
house-sharing platform created Karr, Chair of the Short Term
around a kitchen table in San Accommodation Association (STAA)
Francisco in 2007, Airbnb has and founder of homestay company
grown to become a global byword UnderTheDoormat. ‘For example,
for holiday lets. In the UK, short the weak pound is persuading many
lets are now booked more than British people to consider renting
188,000 times every month through out their home while they’re on
online platforms such as Airbnb, holiday to help pay for their now
HomeAway and dozens of other more expensive overseas break.’
similar sites, according to Airdna. Indeed, recent research by Airbnb
But while there is debate around reveals that 63% of hosts reported
what the growth of short-let that income from the site helped
websites means for housing markets, them pay bills they would otherwise
what’s discussed less is the impact have struggled to settle.19
‘There are so many scenarios in way property owners can make
which people who own properties money from the burgeoning sharing
will consider short lets,’ says Karr, economy, as just about any vacant
‘including, in some cases, the space can be put up for rent. For
flexibility to help pay for their
home’s running costs or the
mortgage – while always seeking
example, Stashbee allows people
to let out garages for storage,
JustPark provides forecourts to
55%
of people in London would
permissions where required.’ commuters, while Campspace consider letting their
Another factor is that people offers gardens to ‘glampers’. homes out. This rises to
are leading more mobile lifestyles. As more and more of us cash 64% in central London
Source: UnderTheDoormat/
Retirees may have two homes, which in on our unused property assets, Populous
means they’re empty half the time. the home-sharing trend is set to
Businesspeople and academics skyrocket as part of the wider
travel the world with their careers. sharing economy – which, PwC
Others have pieds-à-terre in cities
that stand empty for long periods.
A survey by UnderTheDoormat
has predicted, will be worth
£140 billion by 2025.
And there will be plenty of
60,471
Number of active
suggests that more than half of demand. Research by Warwick short-let listings in
all homeowners would consider Business School reveals that 23% London, July 2019
short lets if they felt reassured of the population has already used Source: Inside Airbnb
that someone was looking after Airbnb, while 78% of 18-24 year-olds
it while they were away. say they use sharing services. Indeed,
‘For short lets to be successful, the idea of ownership – of homes How property
the apartment or house needs to be or otherwise – as a kind of status owners would
directly managed by an experienced symbol is becoming increasingly use income
hand if the homeowner wants peace obsolete, according to PwC, from short lets
of mind,’ says Kate Eales, National especially among young people. Source: UnderTheDoormat/
Head of Lettings at Strutt & Parker. But engaging in the sharing Populous
‘For example, homeowners need economy – whether as a host
to be aware of local planning and
leasehold rules about short-let
renting, and it’s important to have
or a guest – isn’t limited to the
youthful or tech-savvy. ‘It’s not
just young people doing this,’ says
74%
would put towards savings
someone meet the guests at the Karr. ‘We see people of all ages –
property before they gain access
so there’s face-to-face contact.’
But short lets are not the only
from first-time buyers to retirees –
realising that their home can
make them money.’ ◆
45%
would put towards
their rent/mortgage
44%
People are beginning to would spend on a holiday/
visiting friends or family
recognise that leaving a home 42%
sitting empty is a missed benefit would put towards
renovating/refurbishing20 U R B A N FA R M I N G
We take it for granted that
we can feed cities easily and
indefinitely. But with more than
two-thirds of the world’s population
expected to live in urban areas they eat, according to Dejan Mitrovic,
by 2050, and global threats to a director at the sustainability
food security (as outlined in the consultancy Department 22.
Intergovernmental Panel on Climate ‘We’ve seen a huge increase in
Change’s special report, Climate interest and action taken by people
Change and Land), governments, and businesses,’ he says. ‘People
producers, planners and citizens are realise that if we don’t act
looking for more sustainable solutions immediately, it will be too late.’
to food production and supply. Neither is Steel defeatist: ‘As
It’s a critical need, says Carolyn we strive to lead good lives in a
Steel, author of the book Hungry crowded, low-carbon future, we
PAINT
City: How Food Shapes our Lives. must learn to value food again,’
And she thinks we can resolve a she says. ‘This would mean food
looming crisis by learning from markets, vegetable gardens and
THE
how earlier civilisations grew food. independent bakeries fighting back
‘Our ancestors knew better,’ she against supermarkets and retail
wrote in the Architectural Review in chains. Our homes, gardens and
2018. ‘Ancient Athens understood workplaces would change, too, as
TOWN the importance of scale in the city-
state: if a city was too small it lacked
we made more time for cooking
and eating together and growing
the resources to defend its territory, and preserving food.’
GREEN too big and it struggled to feed
itself. The ideal arrangement was
for each citizen to have a house in
Ann Marie Aguilar, Director
of Operations for Europe at the
International WELL Building
the city and farm in the countryside.’ Institute (IWBI), also sees valuing
Today’s urban consumers – healthy, natural food as an
in particular millennials – are important step towards creating
increasingly interested in the more sustainable cities.
provenance, health-giving qualities ‘At IWBI, we advise on minimising
and environmental impact of what the amount of processed foods
introduced into communities by
fast-food suppliers and »
As rooftop Total area of green roofs
gardens and in Greater London
Source: European Federation of Green
living walls make
Roof and Green Wall Associations/Greater
London’s buildings London Authority
increasingly
verdant, could 1.5 million sq m
an urban farming
revolution help
cities to feed 715,000 sq m
their growing
populations?
2010 2017
Words Dominic Lutyens21
22 U R B A N FA R M I N G
restaurants,’ she says. ‘We believe
community gardens, allotments and
farmers’ markets impact positively
on physical and mental health.’
Urban farming is now a global
phenomenon. ‘It is particularly The success of Growing The benefits of
prevalent in Dutch, German and Underground mirrors the rise of
Scandinavian cities and, increasingly, vertical farming as a viable method
vertical farming
Source: Strutt & Parker
in the Far East and US,’ says of agriculture. Will Gemmill, Head
Mitrovic. ‘Architects are beginning of Farming at Strutt & Parker,
to incorporate food production into
urban architecture.’ He cites Swedish
practice Belatchew Labs’ proposal
believes that vertical farming –
inside buildings, shipping containers
and glasshouses using hydroponic
10 times
the output of an outdoor
to establish edible cricket farms or aeroponic methods – has farming system
throughout Stockholm to provide an significant advantages in terms of
95%
alternative protein source to meat. increased yield, reduced pollution
Other forms of urban food and reduced packaging, and cites
production are mushrooming too. Ocado’s investment of considerable
water savings compared
Rooftop gardening is popular in sums into a vertical farming fund.
with outdoor farming
London’s hospitality sector: for So is the spread of urban farming
example, ingredients used at The having an impact on the London
Dairy restaurant in Clapham, south
London, are grown on its roof,
which boasts four beehives and
property market? ‘Traditional
landlords are starting to consider
leasing opportunities that address
85%
saving on inputs (such as
numerous vegetable beds. the growing desire for urban farming,’ fertilisers) compared with
Hydroponics, meanwhile, involves says Nick Hillard, Sustainability outdoor farming
growing crops in water and nutrients Director at BNP Paribas Real Estate.
rather than soil. A leading exponent In London, a 2008 policy of
in the UK is Growing Underground, encouraging living roofs and walls
a subterranean farm co-founded in has had a transformative impact on
2012 by Richard Ballard and Steven the city’s roofscape, with the capital
Dring that occupies 6,000 sq m now accounting for more than 40% Projected percentage
of repurposed air-raid shelters, also of all green roofs in the UK. of UK population
in Clapham. It supplies products ‘London is forward-looking in its living in cities
to Marks & Spencer, Tesco, Whole urban greening,’ Hillard says. ‘It has Source: UN Department of Economic
Foods Market and restaurateurs promoted green walls and roofs in and Social Affairs, Population Division
including Michel Roux Jr. developments. That said, we’re still
‘Food production generates about largely at a tokenistic stage: the
one-third of carbon emissions,’ says comparative total yields for urban 88.4% 90.2%
Ballard. ‘By contrast, we grow herbs agriculture initiatives are still low.
and salad mixes hydroponically ‘However, there are good 2050
using energy-efficient LED lights. examples of buildings reconnecting
‘Grown underground, our products with nature, such as London’s 2040
aren’t affected by changing weather high-rise 10 Fenchurch Avenue in
conditions, which often ruin crops, the City, which has a roof garden 2030
so they’re of a consistent quality. As with wisteria groves and wildflower
our farms are closer to the point of areas open to the public.’
consumption, we use less transport, Whether all these are signs of
which reduces our carbon footprint.’ a paradigm shift or a niche trend, 2020
it’s clear that a new mindset is
challenging the old ways of food
production, resulting in cities that
are greener in every sense. ◆ 86.3% 83.9%23
There’s a trend in
cities towards vertical
farming, which has
several advantages:
it produces fresh
produce all year
round; it causes less
pollution; and it uses
less packaging
Will Gemmill, Strutt & Parker Head of Farming
62%
The UK imports 62% of its fruit
and vegetables from the EU,
highlighting the need for solutions
such as urban farms to help reduce
our reliance on imported produce
Source: European Commission@struttandparker struttandparker.com © BNP Paribas Real Estate Advisory & Property Management UK Ltd. All rights reserved. No part of this publication may be reproduced or transmitted in any form without prior written consent by BNP PRE. The information contained herein is general in nature and is not intended, and should not be construed, as professional advice or opinion provided to the user, nor as a recommendation of any particular approach. It is based on material that we believe to be reliable. While every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. Strutt & Parker is a trading style of BNP Paribas Real Estate Advisory & Property Management UK Limited, a private limited company registered in England and Wales (with registered number 4176965) and whose registered offi ce address is at 5 Aldermanbury Square, London EC2V 7BP.
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