One in five households privately rented
Private Renting Sector continues to grow
Research forecasts that private renting will account for 20% of all UK households in just five years’ time.
New statistics show the total number of rented homes in the UK will have increased from 4.8 million to a huge 5.5 million by 2020, representing a fifth of the entire housing market.
The same report also showed the capital gains and rental income in the private rented sector increased overall by £5.8 billion last year, taking the total earnings of buy to let investors to £112bn. The combined value of these properties is believed to equate to £990.7bn, more than three and a half times higher when compared to £262bn in 2001.
Further to this, the Government's own figures predict that one in three properties will be owned by private landlords in less than two decades time.
Significant increases in rental prices are believed to have played a part in the recent buy to let boom which looks set to continue thanks to the historically low mortgage rates available at the moment. Recent changes to pension access as well as the stamp duty changes are also thought to be contributing factors to many turning to buy to let investment property.
comments from sequre
Managing Director of Sequre, Graham Davidson, comments on the increase of private rented accommodation:
“Whilst barriers to home ownership is proving to be problematic for those wanting to jump onto the housing ladder, private rented accommodation is becoming increasingly popular for a generation of young tenants. Buy to let property offers students and professionals a flexible lifestyle, meaning they can afford to live in high quality, city centre apartments without the commitment of owning a property. Something they would be unable to do if it weren’t for the two million private landlords in the UK.”
“The report highlights a 5% increase in landlord earnings, and it would be no surprise to see this figure rise further over the next few years given the current property market. The Government predictions indicate the current success rate of buy to let and its popularity amongst new and existing landlords. We would recommend anyone who has been considering a property purchase to get involved now as a means to securing a sound investment for the future.”
Demand for private rented accommodation is continuing to soar. If you’re considering a buy to let property investment in the UK or overseas, contact Sequre today and let our team talk you through the process. We source property in bulk at a discounted rate ensuring our investors can get fantastic returns on their investment and achieve instant equity from day one. Call 0800 011 2277 for more information.