LETTING & ESTATE AGENT

New Martin & Co Reports Measure Growth of Private Rented Sector Over 30 Years

New Martin & Co Reports Measure Growth of Private Rented Sector Over 30 Years
Martin & Co has commissioned new special edition market intelligence reports focusing on our 30 years in the private rental sector. These reportsexplore how the market has changed nationally, in London and in Scotland since Martin & Co's first let in 1986. Key findings include:
  • A 135% increase in the number of private rented sector homes
  • 346% increase in number of 35-44 year-olds privately renting
  • 71% of 16-24 year-old households are privately renting, up 32% from 1986
  • The Private rental sector doubled in size from 1986, to a fifth of the entire UK property market today.
  • An expected 100,000-200,000 households per year, for five years, to move into the PRS.
The reports come at an important time - buy-to-let has faced a lot of media coverage in the lead up to the new stamp duty levy on second homes, and increasing tax pressures are putting some smaller-scale landlords on edge in the fear that they may lose profitability in the coming years. houses2 However, the report paints a reassuring picture. Since Thatcher's Conservative government in the 80s the private rental sector has revolutionised the UK property market, and now stakes a claim as the 'norm' for the majority of younger (18-24) and mature (35-44) households. Out of 380 UK districts, 355 have a private rental sector of at least 10pc of all households, of which a further 169 have at least a 15pc share of privately rented properties.

Are the latest buy-to-let legislations going to diminish the long-term strengths of the investment?

The figures say no. Property prices will continue to rise, as will rents, demand for rental properties, and the length of tenancies as renting becomes more and more mainstream. Some landlords may be forced to sell their rental properties before 2020 as a result of increasing landlord taxes, but the majority of landlords will likely still benefit from the growing private rental sector looking further into the future. They will offset stamp duty levies by earning equity in a long-term asset, and rents will provide a material monthly income. In Scotland the number of privately rented households has nearly tripled (180% increase), and the average age of a Martin & Co tenant is 32.5 years, surprisingly 'mature'. Average rental properties command £609pcm, and this jumped 8.8% from the first half of 2015 to the second half. Meanwhile, London continues to act as an economy in itself. Privately rented properties more than doubled (118% increase) in the last 30 years, now accounting for just over a quarter of London's total properties. The average London tenant pays £1292pcm rent, earns an average salary of £36,383, and is 34 years old. 25 of 32 London boroughs now have at least a 20% rate of privately rented properties, up from just 7 boroughs 30 years ago, showing the huge expansion of the private rented market in the capital since the 80s. Westminster has 40% of its properties in private rented accommodation, and Kensington & Chelsea has 36%. Newham, Tower Hamlets and Camden all have over 30% privately rented properties. With first-time buyers needing an average deposit of £109,000 to buy a property in London, it is easy to see how the shift towards renting in the capital has grown and will continue to rise. The new Martin & Co market intelligence reports are now available and you can download your FREE copy here. Plus you can contact your local branch for further advice on property investment and the market as a whole.