The UK private rented sector has grown by 47.9 per cent since 2007, according the latest market report from Jones Lang LaSalle.
And, according to online letting agent Upad, high prices, unrealistic deposit requirements and mortgage constraints making homeownership unattainable, the expansion of the private rented sector (PRS) looks likely to accelerate with UK landlords looking to benefit from increasing rental demand.
Chief executive James Davis said: “The latest report from Jones Lang LaSalle suggests that 1.7 million additional privately rented homes will be needed over the next four years to meet demand. And, as a result of growing tenant demand, there is strong motivation for landlords to increase their portfolios and take advantage of the market.”
Meanwhile, according to a recent private rental sector trends survey from specialist buy-to-let lender Paragon Mortgages, 91 per cent of landlords said they thought that demand was fixed or had increased between July and September this year while 68 per cent of landlords said that their rental income had remained the same during Q3 2012 and 27 per cent said that it had actually increased – another reason for landlords to feel positive about the performance of the PRS.
Davis added that, it seems UK landlords plan to increase their portfolios with the survey research revealing that the average holding is set to increase from 12.5 per cent to 12.9 properties within a year. Of those surveyed, 16 per cent plan to buy more property to rent out over the next 12 months.
He said: “The UK’s private rented sector is not only stable, it is increasing. There is more incentive than ever for UK landlords to invest in rental properties with the likelihood that we will see a significant increase in the number of accidental landlord’s entering the market over the next year.”
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