This month, the website Startups.co.uk has identified several business trends for 2018 that both new and established businesses can take advantage of. Landlords and developers could profit from some of these trends.
‘Lagom’ is the name of a Swedish philosophy movement, meaning “not too little, not too much”. Lagom has influenced interior design including products sold by IKEA. The philosophy could appeal to younger people, so could be ideal for landlords to incorporate in luxury student accommodation that attracts higher rent paying students.
Another trend identified by Startups.co.uk is what it calls “Generation Rent” – millennials who cannot see themselves buying their first home for many years. This means that demand for rented property will remain high. Millennials are particularly interested in shared houses and love unconventional property, so large family homes can be converted to houses of multiple occupancy by enterprising landlords.
Another growth area is care homes. There is a shortage of around 3,000 care home beds and this could rise to 14,000 in 2026 if more homes are not developed. There are commercial mortgages and public funding available to help finance care home developments, while property experts Knight Frank estimating that there is around £3.5 billion of UK private equity available to invest in the care home market.
One key to successful business is to operate in a market with a high demand for particular services. Landlords and developers who are aware of demand trends can capitalise on them to create profitable businesses.