The Living Sector: An Engine for Growth and Talent Retention in the UK's Cities
October 19
5 min read
New research from Close Brothers Property Finance, The Housing Forum and JLL
The Living Sector plays a vital role in supporting the growth, prosperity and competitiveness of towns and cities across the UK. Yet too often, purpose-built student accommodation (PBSA), build to rent, co-living and other professionally managed rental housing are viewed solely through the lens of housing delivery, rather than as critical infrastructure that helps attract and retain talent, create jobs and support economic growth.
To explore this relationship, at Close Brothers Property Finance we partnered with The Housing Forum and data partner JLL to deliver the first comprehensive study examining the connection between the Living Sector and local economic performance across the UK's principal university cities.
What's included in the report?
The Living Sector: An Engine for Growth and Talent Retention in the UK's Cities analyses 20 major university cities across the UK, examining:
The scale and maturity of Living Sector markets, including PBSA, build to rent, co-living and single-family rental housing
The relationship between Living Sector development and economic growth
Trends in job creation, unemployment and graduate retention
Forecasts for housing demand and employment growth to 2035
Research and insight from investors, developers and operators active in the Living Sector
The barriers currently affecting investment and delivery
Practical recommendations for local and national policymakers
The report combines economic analysis, market data and industry insight to provide an evidence-based assessment of how professionally managed rental housing supports thriving local economies.
Key findings
The research found that cities with the most developed Living Sector markets have:
Added jobs at almost twice the rate of cities with less mature Living Sector markets
Reduced unemployment more significantly over the last decade
Retained and attracted young talent at a faster rate
Created stronger foundations for long-term economic growth
The report also highlights a growing challenge: in 15 of the 20 cities analysed, jobs are forecast to grow faster than housing supply by 2035, increasing pressure on affordability and talent retention unless more homes are delivered.
Alongside the economic analysis, an industry survey found strong investor confidence in the sector, with most respondents planning to increase their exposure to Living Sector assets over the next two years. However, concerns remain around development viability and regulatory processes, which many believe are constraining delivery.
Why it matters
As the UK seeks to boost productivity, attract investment and support regional growth, ensuring cities can retain graduates and young professionals has never been more important. The report demonstrates that the Living Sector should be viewed not simply as a housing solution, but as an important contributor to economic development, placemaking and long-term growth.
As Chiara Caldwell our Managing Director of Structured Finance, explains: "Too often, the Living Sector is treated as a planning challenge rather than a policy solution. The evidence in this report points the other way: the cities that have made room for professionally managed rental homes are the cities adding jobs, reducing unemployment and keeping young people."
Download the report
Download the report to explore the full findings, city-by-city analysis, investor research and policy recommendations, and learn how the Living Sector can help drive economic growth and talent retention across the UK's cities.
