Property investors set to benefit from boom in renting
The number of people renting, rather than buying their home, is continuing to rise, with landlords with buy-to-let properties in the south-east of England particularly well-placed to cash in on this trend, the latest report from Oxford Economics suggests.
According to the think tank, home ownership across England is set to fall to just 63.8 per cent over the coming decade, effectively meaning around one in three people will be renting.
And, hand-in-hand with this rising demand for rental accommodation, private sector rents are expected to carry on creeping up, with landlords in London especially set to notice the difference over the coming years.
Indeed, average rents in the private sector are set to rise by 19.8 per cent over the next five years alone, driven largely by the growing demand caused by a lack of affordable mortgage deals for would-be first-time buyers.
This amounts to the typical tenant paying an extra £1,152 a year more for their accommodation, again highlighting the benefits to be had from investing in buy-to-let properties.
Commenting on the findings of the Oxford Economics Research, the head of the Housing Federation David Orr, explained that home ownership will become increasingly the "preserve of the wealthy", with renting set to become the norm, rather than the exception.
"For the millions locked out of the property market the options are becoming increasingly limited as demand sends rents rising sharply and social homes waiting lists remain at record levels," he said.
Illustrating the ongoing shortage of homes right across the UK, the Ilkley Gazette this week reported that an additional 3,000 properties are needed in the West Yorkshire town alone, with Bradford Council struggling to meet demand for accommodation, while across the Pennines in Burnley, local authorities are also reportedly working flat-out to deal with the mounting housing crisis being experienced there.
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