Sales are slowing. Rentals are rising. Build to Rent is leading. What does that mean for developers, tenants, and the future of supported living?
2025 has been a year of contrasts.
The August RICS Residential Market Survey shows the slowdown in sales is deepening. New buyer enquiries fell for the second month in a row, with the net balance sliding to -17% down from -7% the month before. Agreed sales also dropped further to -24%. More buyers paused. Seller pulled back.
House prices are edging lower too, with a national balance of -19% reporting declines. (RICS Residential Market Survey, August 2025)
At the same time, rental dynamics are moving in the opposite direction. Tenant demand is still strong. But landlord instructions have fallen sharply. A -37% net balance, the weakest since April 2020. For context, the net balance in question here is not a direct percentage change in prices. It measures breadth, not depth. It is calculated as the proportion of respondents reporting a rise, minus those reporting a fall.
So, what is the result of this?
Simple: More competition for fewer properties. 27% of respondents expect rents to rise over the next three months. 3% annual rent growth is pencilled in for the year ahead.
The picture is clear – Sales are soft. Rentals are tightening. And Affordability pressures remain on both sides of the market.
At WeLive, we see this as a confirmation of what we have long believed. Housing must go beyond bricks and mortar. It must actively evolve to match the way people live today. That means delivering homes that are accessible, affordable, community-led and built to last.
And as the market evolves, we believe the future might just lie in these four defining shifts.
Market Reality: Slower Sales & Rise of Build to Rent
The sales market has been subdued. Buyers are waiting. Housebuilders are slowing their pipelines.
But in the rental sector, demand has surged. Families, students, young professionals, and older adults – all are competing for fewer homes.
The CBRE UK Real Estate Market Outlook adds a context: while lower interest rates may gradually stabilize housing sales, the imbalance between supply and demand will continue to drive rental growth. CBRE forecasts that the Build to Rent (BTR) sector will remain one of the fastest-growing subsectors, drawing institutional capital as traditional housebuilding lags behind.
This is because for many, supported living arrangements – where affordability, flexibility and community matter as much as space – are the most practical choice. A single professional might struggle to rent a one-bed flat in Wimbledon. But in a co-living setting, they can access a high-quality ensuite room, share amenities, and a built-in community at a fairer cost.
At WeLive, we believe this environment- more than being a business model – becomes a way of addressing the importance of our mission. Our projects convert underused properties into vibrant, high-yield co-living HMOs. A 3-bedroom house becomes a well-designed 11-bed supported living space. Every ensuite finished to a high standard. Every detail is built for comfort, safety, and connection.
This is accommodation with a purpose. Housing that is designed not only for efficiency but also for supported living needs.
Planning Reforms: Pointers to Progress.
The UK planning system has continued to be amongst the largest impediments to housing delivery. The data of RICS surveys demonstrates that new vendor instructions went to -3% in August 2025, the first negative value since the middle of 2024.
An obvious indicator that supply pipelines are choking.
At the policy level, CBRE points out that the updated National Planning Policy Framework (NPPF) would bring about reintroduced mandatory housing targets and a new category of land, the so-called grey belt. This is a reform that puts pressure on councils to liberate the land in case the supply of brownfields is inadequate.
In the case of WeLive, this will result in expedited small-scale but high-impact projects: turning 3-4 bedroom homes into 8-11 room supported living spaces in the boroughs that desperately require them.
Operational Shifts: Registry to Delivery.
In addition to planning, development is also being remodelled by operational headwinds. To start with, Building Safety Regulator Delays are impeding plans in the country. This is suppressing the pipeline according to Knight Frank Build to Rent Market Update – Q2 2025 report. Build to Rent (BTR) completions are expected to decline by 11 year-on-year in 2025. Nevertheless, there is a positive aspect to this in that the automation push by HM Land Registry is reducing processing errors, bottlenecks in transactions and flattening acquisitions.
In the meantime, the tenant demand is insatiable. The median turnover of a BTR house in Q2 2025 was only 17 days – stressing the urgency of delivery.
ESG and Sustainability
Net Zero targets are no longer distant. They are actively shaping investment and design choices today.
According to CBRE, embodied carbon regulation is on the horizon. COP29 and EU rules mean that from 2028, all new large buildings must undergo whole-life carbon assessments. The UK is expected to soon follow suit. Along with this, the Future Homes and Building Standard (2025) will mandate higher efficiency and renewable integration in all new builds.
At the same time, in all of this, demographics are shifting:
- The NHS faces discharge delays due to shortages in supported housing.
- Students and young professionals are increasingly priced out of one-bed rentals, seeking community-led alternatives.
- An ageing population is creating demand for accessible, flexible co-living.
For WeLive, by partnering with local boroughs, the NHS, and registered care providers, our homes do not just absorb demand.
They serve communities, reduce pressure on public services, and provide dignity, affordability, and connection for residents.
WeLive’s Position: Final Thoughts
Rentals are rising. Build to Rent is leading.
Planning reforms are taking shape. Sustainability today has become non-negotiable. Community Wellbeing is front and centre.
For some, these are challenges. For us, at WeLive, they are opportunities.
Our strength lies in strategic planning, efficient design, and proactive asset management. Combined with our commitment to supported living, it allows us to deliver homes that are smarter, greener, and healthier.
And this is how WeLive will help shape the future of housing in London.
