What’s The Status of the UK Rental Market in the Future?
It is of no great surprise that it’s terribly demanding for first-time buyers, significantly the younger generation, to get onto (and climb) that ever extending property ladder in the UK. This has been publicised in the media quite extensively and is very apparent in certain locations where the costs of homes are extortionate, such as the trendy capital London.
Large deposits and stagnant wages create a situation in which people cannot afford a secure home with campaigns such as Generation Rent recently initiated to create more awareness of the situation in the capital.
The UK Rental Market is Growing
House prices are rising making it difficult for first-time buyers with the worst national real estate market on record. This simply means that renting in the UK is becoming more and more of a popular alternative. Statistics and predictions show that between 2014 and 2019 across England and Wales, the number of households renting will increase by 1.2 million, owner-occupiers will fall by 200,000 and social renters will fall by 50,000. Half the fall in owner-occupiers is predicted to take place in London.
this on the streets of the UK
Private rents in the UK rental market are forecast to rise by up to 90 per cent between 2008 and 2040, which is more than twice as fast as incomes. The rise in private renting is likely to become more apparent in the next years, especially with flexible working patterns that are not dependant on one set place, meaning people are likely to travel more and not be committed to one property. Renting allows younger people the possibility to move and discover new locations and work situations.
House sharing is also on the up
As a homeowner or landlord looking to rent a property in the UK rental market, it seems wise to make the most of the current financial situation and the increasing demand for rentals. Further increases can be seen especially in house-sharing in the urban markets among younger tenants. There has been a 5.2% rise in England and Wales as the rents increase with a supply/demand mismatch. It seems that this is an exciting time
for house rentals with more people looking to rent.
You should keep an eye on the prices of other property rents within your region
to consider how best to price your own property. A good way to do this is to use this website. The calculator uses existing data of properties in certain areas and compares their rental prices to give you a clearer idea about the average price and how much you should charge when renting in the UK rental market. There are other factors that should be considered, such as the condition, or type of property and this should inform the amount of money you request.
When faced with uncertain financial times, it is good to provide homes for the large influx of workers who desire private rental. More in-depth information can be found on this topic here at ‘The Future of The Private Rented Sector’ published by The Smith Institute. I hope with this information that you go on to provide good temporary properties to those who need it in the UK rental market.