- This is according to Verismart, following recently analysed data of the private rental and home-owner sectors in the UK.
For some, renting is not a choice. As more would-be homeowners are priced out of the market, renting is fast becoming the norm in the UK. For others, renting offers a more cost effective, less stressful way of life. Either way, there is a significantly high demand for UK rental property; and it’s here to stay.
Over the last decade, average rents have grown from £700 per month to £886 today, an increase of 27% Zoopla Rental Index
Established landlords in the UK have long since recognised the benefits of property as a long-term asset class. However, for those just starting to think about their long-term financial planning, this may well be the impetus they need to act now.
“If the present rates continue there’ll be more people renting than owning a home in 20 years. Currently, the UK has the fifth highest number of tenant occupiers out of 28 EU nations.– Paragon Bank
What’s more, the age demographics are shifting too. The number of over 55s renting has more than doubled over the past decade as pension incomes wane and later life divorce becomes more common:
•There has been a 118% surge in 55-64 year-olds renting a property
•The rate of growth is nearly double the next fastest growing age group – 35 to 44-year-olds
•For those aged 65+ , renting is up 93%
Paragon Bank research
These striking statistics present a lucrative, long-term opportunity for buy to let landlords. Location however, remains key to ensuring your property capitalises on this demand.
- LOCATION– choose a property in an region of proven rental demand
- AMENITIES– ensure that the local area meets the demands of your target tenant audience– banks, health care, quality retail, all locally
- CONNECTIVITY– good transport links within walking distance are essential in attracting and keeping good quality tenants
- TENANCY FLEXIBILITY– know your local audience. Long-term tenancy agreements for stable tenants make the best tenants. Choose a reputable rental and management agency that can use their experience and offer advice.
If you’re looking for monthly income, capital growth, or a long-term investment to support your pension income, buy to let may be the asset class of choice for you.
Whether you’re just starting out or looking to build on an existing portfolio, we can help. Our monthly payment plans and no mortgage options are unique to market, making lump sum deposits a thing of the past.
So long as you have a stable income, now is the time to invest in UK property.
Offering the only Freehold Homes via a monthly payment plan on the property market– we can help you achieve your long-term financial goals.