BTL boosted by more long-term renters and rising demand
Wednesday 22 February 2017
The BTL sector received a boost today with the news that demand is expected to rise as renting for the longer term becomes more common.
A quarter of renters expected not to own their own homes in ten years’ time, while around the same proportion spend over 40 per cent of their income on rent, a survey has found.
Michael Thirkettle, of consultants McBains Cooper who commissioned the survey, said: “The potential for PRS and build-to-rent is clear."
"For some it might be because they are priced out of the housing market, for others, it may also reflect a more Continental attitude where people are content to rent rather than buy.”
Estate agent Savills estimate that demand for rented homes will rise by more than one million households over the next five years despite government measures to help first time buyers.
“Demand for rented homes could still rise more sharply than we have forecast,” said Susan Emmett, director, Savills residential research.
“This analysis demonstrates that we still need to provide a substantial number of homes for rent.
“Government policy should focus on supporting the development of new homes to rent as well as to buy.”
The firm says that despite government plans to build 400,000 new affordable homes for sale over the course of this parliament, Britain will still require an additional 220,000 homes for rent a year to keep pace with housing need.
Private renting has been growing by an astonishing 17,500 households per month on average over the 10 years to 2014, according to the English Housing Survey.
The McBains Cooper survey also found that affordability, room size and outdoor space are prized above shared amenities such as sports facilities or communal spaces.
Mr Thirkettle said that these 'traditional factors' might reflect the fact that a high proportion of the older generation are now long-term renters.
We want to add value to landlords with interesting news and views! Our Hub includes information and opinions on the housing market from a variety of expert sources – please just be aware it doesn’t always reflect Simple’s opinion, or the products and services we provide.