Rental market set to swell further in next decade

It is well known that property prices are continuing to spiral out of control and there is a genuine lack of affordable housing in the UK. It has affected a lot of people, none more so than first-time buyers. It has given rise to an increase in the number of people renting instead of purchasing their first properties.

According to new research carried out by landlord insurance specialists Cover4LetProperty, 28% of UK adults are currently living in privately rented or socially rented accommodation.

Last year, accountancy firm PwC remarked that due to homebuyers struggling to raise a sufficient deposit in order to buy their own place, the volume of homebuyers will continue to drop in the next decade.

Additionally, fewer people are qualifying for social housing and thus having to identify other ways to secure accommodation. This is where the need for private landlords is becoming increasingly more important. PwC study suggests that in the next ten years, over half of those over 40 years old will be living in privately rented accommodation. 

By 2025, 7.2 million households will be in rental property, a massive increase on the current 5.4 million.

Chief Economist at PwC, John Hawksworth said, ‘a large and sustained increase in affordable housing supply will be required to meet the needs of a UK population that is growing relatively rapidly by European standards.’

Everything points towards a sustained and vital need for privately rented accommodation in the UK. Even though recent trends in government policy have been to undermine and diminish the important role landlords play in the market. Landlords will continue to play this vital role and all evidence appears to suggest that this role will only grow in importance as demand continues to increase.

Now could be the perfect time for potential investors to invest within the market and look to purchase properties as demand continues to increase and cannot be matched by the current supply.

With tenant demand on the rise, it is important that your property provides exactly what prospective tenants are looking for and that you’re marketing yourself at a competitive price for both the home and its location. You can find out exactly how much that is by speaking to Orchard & Shipman and taking advantage of our FREE Rental Valuation service. By getting your property professionally assessed you are putting yourself in the best possible position to make the most of your investment. Simply call your local Orchard & Shipman property experts and book yours today.