Recent research carried out by the Royal Institution of Chartered Surveyors (RICS) has suggested that at least 1.8 million more households will be looking to rent rather than buy a home by 2025.
This will, of course, be music to the ears of the nation's landlords. Increased demand from tenants is likely to mean higher rents, healthier rental yields and expanding portfolios. A wider pool of tenants means landlords can have greater confidence when it comes to filling their rental properties with ease and minimising the chances of encountering lengthy void periods.
As a landlord, you could also afford to be more discerning with the tenants you pick, ensuring that you choose good, long-term renters who will pay on time and cause you no hassle. In turn, you can provide them with attractive, high-quality accommodation that feels like home.
According to the findings from RICS, the number of UK households renting property privately grew from 2.3 million in 2001 to 5.4 million in 2014. Despite the current government's eagerness to increase home ownership levels, things have actually gone the other way, with more people renting than ever before. This is partly down to high house prices and the difficulty many first-time buyers have in cobbling together large deposits, but in some cases renting has been a lifestyle choice, with young professionals and young families in particular appreciating the flexibility that renting provides.
This will, of course, be music to the ears of the nation's landlords. Increased demand from tenants is likely to mean higher rents, healthier rental yields and expanding portfolios. A wider pool of tenants means landlords can have greater confidence when it comes to filling their rental properties with ease and minimising the chances of encountering lengthy void periods.
As a landlord, you could also afford to be more discerning with the tenants you pick, ensuring that you choose good, long-term renters who will pay on time and cause you no hassle. In turn, you can provide them with attractive, high-quality accommodation that feels like home.
According to the findings from RICS, the number of UK households renting property privately grew from 2.3 million in 2001 to 5.4 million in 2014. Despite the current government's eagerness to increase home ownership levels, things have actually gone the other way, with more people renting than ever before. This is partly down to high house prices and the difficulty many first-time buyers have in cobbling together large deposits, but in some cases renting has been a lifestyle choice, with young professionals and young families in particular appreciating the flexibility that renting provides.
Whatever the reason, the private rented sector (PRS) has grown significantly in the last 15 or so years. And, as RICS' research shows, that trend is set to continue in the coming decades.
Although landlords and buy-to-let landlords might have suffered a few hits in recent months, not least with the introduction of an additional 3% stamp duty surcharge in April and changes to the Wear and Tear Allowance, recent research by Rightmove suggested that talk of the death of the buy-to-let market has been severely exaggerated.
In fact, quite the opposite is the case. After an initial lull in the aftermath of the stamp duty changes, the buy-to-let market is bouncing back, with landlords and investors aware they can achieve excellent rental yields if they invest in the right sort of areas.
Although many in the industry believe the government has been unfairly targeting landlords and buy-to-let investors in the last year or so to improve the lot of first-time buyers, there has been no mass exodus from the market as some feared. Landlords have simply been getting on with things, surveying the new post-stamp duty surcharge and post-Brexit landscape, and putting their plans into action accordingly.
If the projection from RICS is true – and, with current trends, there is no reason to think it won't be – landlords will be kept very busy in the coming years, particularly those in areas with high demand for rental properties and high tenant populations.
East London, for example, has a thriving rental sector because it is generally more affordable than the rest of the capital. Renters are drawn away from the centre of London to find rents that are cheaper and a slightly more relaxed way of life, away from the helter-skelter pace and hustle and bustle that living more centrally provides. Transport links, of course, are very good in this part of London – and improving all the time – which makes the area doubly attractive to the city's millions of workers.
At Sandra Davidson, one of Redbridge's leading estate and letting agents, we will do all we can to make sure you get the absolute most from your rental properties.
With our excellent knowledge of the local area and its rental trends, we provide a high-quality lettings service to ensure you get the best possible rental yields and the best possible tenants in place.
To find out more about what we offer – and our
scheme – please give us a call on 0208 551 0211.
Alternatively, if you would like an estimate of how much you could be charging in rent, check out our
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