Demand from renters to accelerate past a millionMake Text Bigger
Demand for rented homes will rise by more than one million households over the next five years, according to analysis from Savills.
The latest findings have been revealed despite the government’s efforts to help ‘generation rent’ become ‘generation buy’.
The Government has set a target of building 400,000 new affordable homes for sale over the course of this parliament, but an additional 220,000 homes will be required for renting each year.
The sector is predicted to grow by 1.1 million households by 2021, researchers at Savills have revealed.
House price inflation which is accelerating past wage growth has caused homeownership to be a distant dream for many at a time when the social rented sector has shrunk by 2.8% in the last five years.
This has pushed more households in to private renting despite the economic recovery and ongoing low interest rate environment.
Private renting has been growing by a significant 17,500 households per month on average over the 10 years to 2014.
A spokesperson for Discount Landlord said: “The research presented by Savills is great news for the buy to let sector and for landlords as demand is predicted to continue rising.”
“However, landlords should avoid increasing rents to unreasonably high levels as some rogue landlords may be tempted to do.”
“With more and more tenants requiring properties, it is important to get a full picture of your tenant’s background with Tenant Referencing,” the spokesperson added.
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