24% of all UK households are expected to be renting from the PRS by 2021Make Text Bigger
A recent Knight Frank report predicts that by 2021 there will be 5.79 million households renting from the Private Rental Sector (PRS).
With declining home ownership this means UK PRS households will increase from a 21% share now to 24% of all households by 2021.
Other statistics in the report show there are now 4.3 million Social Housing households and 14.3 million owner occupiers in the UK. What on earth would happen to the housing market without the PRS which is now outstripping social housing in providing homes by some margin?
From Survey results conducted with YouGov, Knight Frank are forecasting the Private Rental market with be worth £70 Billion by 2022 which could explain why big corporations were keen to court the Conservative party to the detriment of private landlords.
Knight Frank head of residential capital markets, James Mannix, said “the strength of the UK PRS sector has grown demonstrably in recent years. As consumer demand for affordable, flexible accommodation continues to rise, PRS is firmly establishing itself as a key opportunity for institutional grade investment, due to its long-term potential.
“In order to enhance Build to Rent specifically, the main hurdles of planning policy and land supply must be addressed. With both issues being recognised in the recent Housing White Paper, we hope to see the government encourage more Build to Rent and help to better identify development land.”
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