In the next two years the average rents in England and Wales will reach £800, with more than 20% of the population living in private rented accommodation.
These claims were highlighted at a Council of Mortgage Lenders conference recently by Lucy Jones – the real cost of this represents a 21% increase since 2010.
Lucy Jones gave “While economic expectations have changed, and even as rents in many areas have risen rapidly, the private rented sector has actually been surprisingly stable.
“Meanwhile, the purchase market has resembled a broken rollercoaster.
“First-time buyers have seen a boost from new government schemes this year, but the ability to raise any deposit at all has been severely reduced by the recession. As house prices accelerate, this long-term trend towards renting will continue.”
She went on: “Whatever the regulatory outlook, the economic fundamentals will remain the same. Landlords will be critical in providing more homes for million of people who are no longer able to buy. Not just rents will rise.
“Gross yields are set to increase, too, and that should encourage investment from landlords – but they will need finance to continue to keep pace with such demand.
“More finance can allow more homes, and that’s slowly happening. Buy-to-let advances are growing gradually, at what should prove a sustainable rate. And long may that continue. This year, buy-to-let looks set to return to the same proportion of mortgage lending as it was in 2007.
“The private rented sector is set to flourish in the recovery, if anything more vigorously than its performance in the recession.”
William Taylor (of Martin & Co Huddersfield – Letting agent, estate agent and property management) said “there has not been a significant increase in our local market, certainly nowhere near the 21% discussed, this is obviously a direct reflection of state of the local job market.”