Good news for buy-to-let investors comes with the latest tenant survey from property specialists Knight Frank. Their research shows that the proportion of households in the private rental sector will grow by 24% over the next four years.
This means that 1 in 4 Brits will be renting by 2021.
For prospective investors, this should come as a wakeup call to the vast potential of the market – one that is becoming a more robust asset class by the day.
If you’re looking to take advantage of these positive forecasts, we have plenty of exciting opportunities at Aspen Woolf. Our properties span the whole of the UK, with low-entry prices and guaranteed yields per annum.
Low wage growth, rising living costs and a severe housing shortage will see more and more people relying on rented accommodation as we move further into the 21st century. Would be first-time buyers are accepting that renting is their only viable route into their own homes, for now in any case.
Also consider that many simply prefer the flexibility renting offers, with others seeing it as a chance for independence from their parental home.
What’s more, the Knight Frank report shows that nearly 70% of those surveyed still expect to be living in the rental sector in three years’ time. This is great news for investors as long-term tenants are usually the most reliable, guaranteeing a regular income.
The findings profile the type of people most likely to become tenants. As expected, young couples and single occupancies make up the majority of rented households (59%), with families at 29% and house sharers at 12%.
Young professionals aged between 25 and 34 are the most likely renters, with the majority of these expected to stay put until 2021 at least. According to the report, not wanting to be tied down to an expensive mortgage is the rationale behind this.
Of course, the student factor also plays a big part. Purpose-built flats are now strongly favoured by contemporary students, mainly for their modern amenities, high security and independent living.
At Aspen Woolf, we have a range of student flats in buy-to-let hotspots across the UK.
Official projections from the Private Rented Sector (PRS) Research Consultancy show that 790,620 new rented households will be created by 2021. Their representative Dr Diana Babacic notes that:
“This growth will be largely on the demand side, but as specifically designed units for these age groups come to the market, we expect supply to start drawing more households to the sector. There will also be an increase in the number of mature professionals 35 to 49 years old living in the PRS.”
The Knight Frank report shows how the private rented sector has doubled over the past decade and will continue to grow until 2021. For buy-to-let investors, knowing your investment is likely to attract tenants provides peace of mind, as well as guaranteed rental yields over the next few years.
If you’re interested in becoming a property investor or adding to your portfolio, you can find out about opportunities across the UK, our student accommodation opportunities or get in touch for a chat.