The SFH market has been growing in recent years with a 10% increase from 2022 to 2023. Investors are taking notice of this recent increase in SFH, and the sector was compared by many speakers to the similar the growth in student housing in the 2000s. SFH appeals to investors because it has the potential to provide steady income, attract desirable tenants, and shows more stable rental growth compared to multifamily housing. 

Globally, cities like Copenhagen have become a key focus for the expansion of SFH. With 40% of Denmark’s population renting, investors have been increasingly directing capital into the Nordic markets. The UK is following the trend seen in the Nordic countries, with factors such as the end of the help to buy scheme also contributing to the increasing trend of people renting for longer before they are in a position to purchase a property. According to Savills, lease terms are now averaging 4.4 years. SFH providers appear to be specifically marketing themselves at this group; the young professional couple who want to rent a higher-spec serviced rental property, rather than taking their chances with a private landlord.

Given the increasing importance of sustainability across all real estate industry sectors, fuelled by the UK’s goal of net-zero carbon emissions by 2050 and stricter energy efficiency requirements, it is unsurprising that sustainability is shaping the future of SFH. Speakers on the panels touched on the increasing interest from SFH tenants in things like the Home Quality Mark (HQM) and a shift toward fully electric homes. That suggest that a sustainable approach to single-family housing development will not only benefit the environment but also attract tenants willing to pay more for energy-efficient housing, making for a smart financial investment.

A point of concern raised by multiple panel members was that the sector still lags behind in adopting new technology. The amount of data currently being stored and archived in the sector was described as being ‘one of the biggest setbacks’. Improving technology in SFH developments, such as smart home systems and better data collection, will be key to maximising investment returns.

Although SFH currently still represents a small portion of the housing market, most of the speakers at the conference agreed that this sector has the potential to become a significant asset class in real estate portfolios. While long-term success remains to be seen, the sector's upward trend makes it a key opportunity for investors in the property market.