26th
Feb 2017
40% of renters do not envisage having their own home for at least ten years which is extremely positive news for landlords, according to the survey commissioned by a construction and property consultants.
In times where it is the norm for the government to take an anti-landlord stance along with the media, the PRS (Private Renting Sector) is still looking to perform well for private investors.
The survey was conducted with over 2,000 people who rented their 'homes' and found that 25% respondents are having to spend 40% of their income to fund them.
Private tenants on the whole choose their accommodation from the usual factors of cost, room size and outdoor space, communal spaces and sporting facilities within easy reach are not a major concern.
Chief executive of the organisation, Michael Thirkettle, said: “Our survey shows that renting for the longer term is becoming more common. For some it might be because they are priced out of the housing market, for others, it may also reflect a more Continental attitude where people are content to rent rather than buy. Either way, the potential for PRS and build-to-rent is clear.
“The findings will be of particular interest to investors and developers in the PRS and build-to-rent sector. Interestingly, a high proportion of the older generation are now long-term renters. This might reflect the more ‘traditional’ characteristics in terms of the most important factors people look for when choosing rented accommodation – such as room size and a garden or outdoor space, as opposed to amenities like sports facilities or a cinema and internal communal spaces.”
Other research, undertaken by an estate and lettings agents chain, forecasts that over the next five years demand for rented properties will increase to over one million and the government's plans to ensure that renters will one day become 'home buyers' are inadequate.
During their present term the Tories have set themselves a target of having 400,000 new homes built and will be affordable, however the United Kingdom still has to provide an extra 220,000 private rented homes per year according to the firm.
It also predicts that despite the government's plans the PRS will rise by 1.1 million households even if the new builds target is reached.
Susan Emmett, director of the firm's residential research, said: “Demand for rented homes could still rise more sharply than we have forecast,”
The English Housing Survey claims that from 2004 up to 2014 private renting households rocketed by approximately 17,500 per month.
Emmett continued: “This analysis demonstrates that we still need to provide a substantial number of homes for rent.
“Government policy should focus on supporting the development of new homes to rent as well as to buy.”
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