UK PRS should prepare for a million more tenants, say Savills
Giant UK estate agency, Savills are predicting a massive increase in the number of tenants living in the UK private rented sector (PRS) over the next five years.
The company is also predicting that more UK housing associations will seize upon a fantastic business opportunity and that these associations will add to increasing competition for private rented sector landlords.
Savills say there were 4.3 million tenanted households in the private rented sector in the UK during 2011 and tenant demand remains strong despite the recent upturn in the UK economy and recovering housing market, leading to the prediction of at least another 1 Miliion additional tenancies being required over the next five years.
Former Times journalist Susan Emmet, Savills director of residential research, wrote an article published on the Savills website, stating: “Although renting privately continues to be regarded as a short-term measure, more tenants are renting for longer. The biggest group of private tenants is aged between 25 and 34. However, the fastest growing group of private rented sector tenants are aged between 35 and 44, a quarter of which are young families. They are Generation Rent, and we expect many will never own their own home. The mismatch between supply and demand is driving up PRS rents and forcing tenants into sometimes poor-quality rented accommodation with little security of tenure. Savills exclusive survey of 2,300 tenants conducted by YouGov revealed that there was a greater desire for longer-term tenancies among those over 35, while younger tenants preferred more flexibility. The survey also showed that the search for better-quality rental properties was the main reason tenants move. We interpret this as a search for better standard of accommodation, better design and higher specification. These findings provide an opportunity for housing associations offering market rent homes to distinguish themselves from the average buy-to-let landlord. Now is the time for housing associations to tackle a different kind of housing need. With home ownership now in decline, housing associations could broaden their tenant base and provide a proportion of their housing at market rather than social rent. As this would be in addition to their current operations, the additional rental income could be used to cross-subsidise other tenures.”
So with even the big players predicting continued strong demand for UK private rented sector properties over the next 5 years, there will never be a better time to become a property investor.
Opportunities abound it is just knowing where to look, finding a strategy that will be profitable with a realisable, ethical operating timeframe and having a sound exit strategy in place to allow property investors to maximise returns.
Visit MyPropertyPowerTeam.co.uk where there are hundreds of information pages for each step on the property investment journey as well as a few hints and tips from successful property investors, educators and Guru’s, plus hundreds of property investment, business, entrepreneurial, motivational and inspirational articles written by some of the UK’s best and brightest property investors.
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