One in Three Properties Rented
One in three properties in the UK today is rented. Figures released from the Department for Communities and Local Government reveal that only 66% of homes are owned by those who live in them, compared with 71% nine years ago.
The strong demand for rental property can be partly attributed to would-be buyers who are forced to rent whilst struggling to find mortgage finance, or first-time buyers unable to save a deposit. Proof that first-time buyers are finding it increasingly hard to get a foot on the property ladder is borne out by the fact that only 10% of homeowners are now aged under-35. There has also been a slight increase in the number of expatriates relocating to the UK for employment, keeping Britain in the top three relocation destinations in the world.
The outlook for the rental market appears strong as demand for lettings remains high. The latest RICS (Residential Lettings Market Survey) February – April 2012 finds that tenant demand continues to outstrip instructions to let. In fact, demand for lettings picked up in all regions except London, where it moderated slightly.
New instructions increased in the North, Midlands, Wales and South West. They remained relatively unchanged in the South East and dropped slightly in London. However all sources agree that tenants are being much more picky than previously and taking longer to make decisions. Most tenants seem to prefer to stay put where possible rather than move and incur a potential uplift in rent.
Posted on the 9th July, 2012
