The corporate housing market within the UK is showing strong signs of a post-pandemic recovery, the latest research by London lettings and estate agent Benham and Reeves shows.
Last year, the market size of the corporate housing sector grew by 44% to £865.6m.
The growth seen last year is expected to continue in 2023, albeit at a more measured pace, with a further 7% increase in market size forecast.
This would push the total market size of the sector to £930.1m.
However, Benham and Reeves say it remains some 34% below pre-pandemic levels.
Corporate housing relates to operators who rent out properties to corporate clients on a temporary basis, with corporate housing stock usually consisting of serviced apartments and aparthotel suites.
The analysis by Benham and Reeves looked at the market size (£) of the sector and how this has changed over the last decade.
The figures show that in 2013, the estimated size of the market sat at £1.240bn, climbing by 6% in the run up to the pandemic to a total market size of £1.319bn by 2019.
However, complications posed by the pandemic, both in relation to workplace and travel restrictions, had a significant impact in the years that followed.
In 2020, the corporate housing market saw a 1% decline, before plummeting by 54% in 2021 to £602.9m.
However, the sector is now showing signs of bouncing back.
Benham and Reeves director Marc von Grundherr, says: “The corporate housing market suffered greatly during the pandemic as not only were we forced to work from home, but international and domestic travel restrictions also brought about a reduction in demand.
“As a result, it’s no surprise that the sector saw a significant retraction in terms of total market size and it’s yet to fully recover in this respect.
However, he says there are ‘plenty of positives to take’ from the report.
“The question is whether or not the sector will return to its pre-pandemic benchmark as while normality has returned, there remains a pandemic influence with regard to the way we work that continues to dampen demand,” he adds.
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