1 in 5 households will rent by 2016

According to recent research, 20% of UK households will be living in rental accomodation by 2016.  The report also revealed that an extra 1.1 million rental homes will need to be provided to fulfill this demand.

This news will come as little surprise to many who have been part of the gradual shift from home-ownershp to renting in recent years.  A combination of affordability constraints, and a desire to live a more flexible lifestyle in central urban areas, has meant that many individuals are now renting property for the foreseeable future, rather than looking to buy a home of their own.

This is good news for buy to let landlords and individuals who are keen to invest in rental property.  The research estimates that around £48billion was paid in rent to private landlords in 2011.  In 2016 this is estimated to rise to £70billion. 

Landlords looking to expand and grow their portfolios should work with agents who are not only able to help them source tenants but also alert them when properties suitable for rent come up for sale. 

There is a huge opportunity for canny investors to capitalise on the ever increasing rental demand in the UK and those wishing to get a foothold on future opportunities should start to discuss their strategy with their agent soon.

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Posted by: Nicola Severn Categories: Landlords Advice, Letting, Uncategorized Tags: , , , 2 Comments

2 Responses to 1 in 5 households will rent by 2016

  1. avatar Biscuitbum says:

    Imagine renting into your retirement with no security of tenure, and ever rising rents. It`s not something I would recommend

    • avatar Gemma says:

      Imagine having to sell the house you have worked hard to pay for all of your life to fund existence in a Nursing Home in later life! Buying a house nowadays stretches even the people with relatively good incomes. Renting gives you security if you find the right Landlord, and you dont have to sit unhappy in something waiting for it to sell if your circumstances change. It can take years to sell, and just a few weeks to move if you rent. People say it’s dead money, but you can’t take it with you when you go, so choose the easy option where you can pick and choose! The people who took out large mortgages years ago are the winners. The people trying to get on the ladder now are the losers, despite government incentives. Looks good on paper, but people still need to work out the cost in real terms. Interest rates will NOT fall, they can’t get any lower.I have been renting for 6 years now after divorce, and have not had a problem yet. Be a good tenant, and your Landlord will always respect you.