UK Buy-to-let Rental Market
UK Buy-to-let Rental Market or private rented sector (PRS) has been on growing steadily since the 1990’s. The number of people living in rented accommodation has doubled. One in five households is privately rented. The English Housing Survey, published earlier in the year, found there are now 2.5 million more households renting privately than there were at the turn of the century. Furthermore, the Private rented sector is expected to continue to grow; A report by Knight Frank anticipates the sector will continue this growth over the next five years, meaning a quarter of all homes are set to be privately rented by 2021.For Buy-to-let For investors, this is positive news as it highlights the strong. Property in locations which are in high demand, assures landlord investors of high occupancy levels and dependable rental income each month.
UK Buy-to-let Rental Market: What’s causing the growth?
The underlying factor behind the surge in rental reliance is a lack of affordability in the property market; worsened by a chronic housing shortage. Adding further complications to the market dynamic is an ageing population and large net migration figures which are all creating further difficulties for first-time buyers. For many professionals in the UK, and especially across the younger workforce, wage growth has been largely stagnant. Contrasting this, to rising property prices, means home ownership is now out of reach for growing proportion of people in the UK. Therefore, renting is the only suitable living choice, and as a result has now become a long term solution. Knight Frank found that 68% of renters expect to be in the same position in three years’ time. This is fueled predominantly for financial reasons.
UK Buy-to-let Rental Market: Who will rent my buy-to let?
Young people are more likely to rent long term. The English Housing Survey confirmed these observations. It found younger households are more likely to be renting than owning, not just numerically but proportionally as well. The share of those aged between 25-34 in the PRS has increased from 24% in 2005/06 to 46% now. The same period also witnessed a drop in home ownership by the same age group, falling from 56% to 38%. Families with dependent children in rented housing has also risen by 6% in this same period. This should encourage prospective landlords as families usually make for consistent, long-term tenants. Also of note is that 787,000 households moved from one privately rented home into another, confirming the notion that many people are unable to break out of the rental cycle.
Thinking of Investing?
UK Buy-to-let Rental Market is buoyant, and a relatively low-risk way of generating extra income. Since the Brexit vote and Sterling’s subsequent decline, more and more international buyers are thinking of investing in UK buy-to-let property. What should you consider when weighing up a buy-to-let investment in the UK; Location is still key, easy access to city centre areas and universities will affect the tenancy demand. So for continuity of rent city centre locations and commuter belt areas are strong investment zones. Finish and facilities, now as tenants view rental accommodation as a long term living arrangement, the expectation is a higher quality standard of accommodation. This is something which the private rented sector has previously neglected. Investing in well finished furnished property in a buy-to-let hotspot will put you the landlord in good stead for both constant rental demand and also capital appreciation on the asset. Click Here to See the Latest UK Property News Click Here to See the Latest UK Buy-to-let For Sale
UK Buy-to-let Rental Market
UK Buy-to-let Rental Market or private rented sector (PRS) has been on growing steadily since the 1990’s. The number of people living in rented accommodation has doubled. One in five households is privately rented. The English Housing Survey, published earlier in the year, found there are now 2.5 million more households renting privately than there were at the turn of the century. Furthermore, the Private rented sector is expected to continue to grow; A report by Knight Frank anticipates the sector will continue this growth over the next five years, meaning a quarter of all homes are set to be privately rented by 2021.For Buy-to-let For investors, this is positive news as it highlights the strong. Property in locations which are in high demand, assures landlord investors of high occupancy levels and dependable rental income each month.
UK Buy-to-let Rental Market: What’s causing the growth?
The underlying factor behind the surge in rental reliance is a lack of affordability in the property market; worsened by a chronic housing shortage. Adding further complications to the market dynamic is an ageing population and large net migration figures which are all creating further difficulties for first-time buyers. For many professionals in the UK, and especially across the younger workforce, wage growth has been largely stagnant. Contrasting this, to rising property prices, means home ownership is now out of reach for growing proportion of people in the UK. Therefore, renting is the only suitable living choice, and as a result has now become a long term solution. Knight Frank found that 68% of renters expect to be in the same position in three years’ time. This is fueled predominantly for financial reasons.
UK Buy-to-let Rental Market: Who will rent my buy-to let?
Young people are more likely to rent long term. The English Housing Survey confirmed these observations. It found younger households are more likely to be renting than owning, not just numerically but proportionally as well. The share of those aged between 25-34 in the PRS has increased from 24% in 2005/06 to 46% now. The same period also witnessed a drop in home ownership by the same age group, falling from 56% to 38%. Families with dependent children in rented housing has also risen by 6% in this same period. This should encourage prospective landlords as families usually make for consistent, long-term tenants. Also of note is that 787,000 households moved from one privately rented home into another, confirming the notion that many people are unable to break out of the rental cycle.
Thinking of Investing?
UK Buy-to-let Rental Market is buoyant, and a relatively low-risk way of generating extra income. Since the Brexit vote and Sterling’s subsequent decline, more and more international buyers are thinking of investing in UK buy-to-let property. What should you consider when weighing up a buy-to-let investment in the UK; Location is still key, easy access to city centre areas and universities will affect the tenancy demand. So for continuity of rent city centre locations and commuter belt areas are strong investment zones. Finish and facilities, now as tenants view rental accommodation as a long term living arrangement, the expectation is a higher quality standard of accommodation. This is something which the private rented sector has previously neglected. Investing in well finished furnished property in a buy-to-let hotspot will put you the landlord in good stead for both constant rental demand and also capital appreciation on the asset. Click Here to See the Latest UK Property News Click Here to See the Latest UK Buy-to-let For Sale
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