The Buoyant Property Rental Sector is Set to Grow Further
There are currently around 5 million tenanted households in the UK and this is set to grow further. If the last decade is anything to go by, we’re in for a surge of tenants looking to rent good properties up and down the country. Should this growth continue, a quarter of all households will be private tenants as opposed to owner occupiers by the year 2020.
This increase is due in part to the flexibility afforded by renting property. Younger workers tend to move around depending on where they work and renting a property rather than buying remains an attractive proposition for them. Further, with property prices where they are today, it is taking longer to save up for a deposit. Hence, people are renting for longer which is great if you’re a landlord.
London and other large cities continue to command the highest rents in the UK and also retain the greatest number of rented housing stock. Tenants range from professional families through to single individuals in shared accommodation.
The current trend of young 25-34 year olds choosing to rent property over buying, is also set to continue going forward. Couples without children make a good proportion of those in private rented property. In large cities like London, Birmingham and Manchester there is also a large proportion of sharers; again, this is set to rise with increasing rents and property prices. In contrast, elderly people are less likely to rent; those over 65 making up only 5% of the rental sector.
“Attitudes to rent have definitely changed with many people being perfectly content living in rented accommodation with no desire to buy. I think factors such as jobs being more changeable and moveable and also the fact that landlords have much tighter rules to comply with meaning housing standards are much higher all contribute to us having more long term renters. I also think it’s very difficult for young people to be able to save enough money for a house deposit with most having to rely on parents and grandparents to help them if they do.”, Laura Fiddes-Baron, Lettings Manager.
If you’re a landlord looking for a great letting agent to manage your properties for you, please do get in touch. Our lettings manager Laura can advise you on how to ensure your property attracts good tenants and achieves the best possible rent.