The average age of a first time buyer in the UK is now 42 compared to 33 in 2005. In 2005/6 the number of households renting privately was 2.4 million by 2009/10 this number has risen to 3.4 million a Report by Communities and Local Government’s English Housing shows. Around three-quarters, of the private tenants are in an assured or assured shorthold tenancy.
The future for rental demand is high as reported on Letting Agent Today – ‘Rents are continuing to shoot skywards, with the average rent in England and Wales now standing at £687 a month – 4.2% higher than last year. With Landlords poised to buy up more properties as rental demand continues to swell.
LSL, parent company to Reeds Rains and Your Move have said landlords in March increased rents by 0.4% compared with February. Growing rental demand continues to outstrip supply, with most would-be first time-buyers staying in rented accommodation for nearly a decade.
The future is bright for rentals - recently published DOE figures estimate a need for an extra 4 million homes in the next 20 years, due to factors including a rising divorce rate, greater life expectancy, growth in single parent households, and continuing immigration, all swelling the demand for rented accommodation.
In France 70% of housing is rented, in Germany the figure is 50%, this economic climate is changing the property industry in time we may see the UK rental market with similar percentages with some analysts predicting that one in five Britons will rent a home by the end of 2020. An Englishman's home may no longer be his castle.
If you are considering moving into letting or a looking to further exploit the growing market contact ARPM for information on how we could help call 01923 775705 or email info@arpm.co.uk
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