One in Five Homes to be Rented by 2022

One in Five Homes to be Rented by 2022

 

 

The demand for rental homes in the UK looks set to grow according to new reports.

In recent years, there have been signs of a generational change in attitude towards homeownership, with new research suggesting that there could be a considerable rise in homes available for rent in the coming years.

Due to rising house prices, which has resulted in a larger barrier to entry, many prospective buyers are under the impression that renting a property is the most suitable option for them in the long term.

Research forecasts that by 2022, just over one in five of all households within the UK will be renting. This is a 1.1% increase on the current proportion of homes that are rented.

There seems to be a clear demand for high-quality rental homes and the market appears to be responding accordingly.

Reports from last month indicate that there’s been substantial growth in the Build to Rent sector, with just over 25,000 build-to-rent homes built over the 12 months.

It was also found that it’s not just landlords and investors bringing new properties to the rental market, as inherited homes are often put up for let instead of sale. Recent figures from the Office for National Statistics showed an average of 200,000 homes are changing ownership through inheritance each year, whilst 16% of all landlords acquire their home without purchasing it.

Government schemes – such as Help to Buy – and the scrapping of stamp duty have helped many first-time buyers onto the ladder. However, many are still relying on the bank of mum and dad, suggesting that there’s still some way to go to solving the affordability issue.