Are you thinking of purchasing a property to generate a second income?
Why is it the best time to secure your rent for the next 5 years?
The number of tenants requiring long term property rentals is rising rapidly and is guaranteed to increase. The number of households in the private rented sector in the UK increased from 2.8 million in 2007 to 4.5 million in 2017, an increase of 1.7 million (63%) households, and will continue to rise and what could be better than guaranteed rent for the next 1-5 years.
With marked shifts in the renting demographic over recent years, 82 percent of people are now focusing on individual aims. A top few of these are raising a family, paying education debt, living in an up and coming area, convenient location, traveling or even funding hobbies rather than saving for their first home as many tenants enjoy the flexibility that renting offers and not having to deal with the maintenance of the property and the responsibility.
Almost 40 percent of renters who have never owned property say they don’t expect ever to be able to buy in the UK
The UK buyer does not seem to be optimistic about the improved chances of getting on the housing ladder. 42% of those asked believe house prices will continue to rise this year, while 58% believe the UK housing market is on the ‘wrong track.’
The biggest reason people gave for their lack of faith in the market was the death of affordable local housing, with 82% citing this as a factor.
“Lots of us want to own our own home one day,” said Jessica Exton, a behavioural scientist at ING. “Not only because it is deemed to be a smart financial decision, but because homeownership is an emotional and personal goal. Houses are expensive and many believe them as only becoming more so.
Statistics and research show that there will be a significant number of individuals, older people, and families that require long term rentals. Younger households are more likely to rent privately, with those in the 25 to 34 years age group representing the largest group. Households in the 45 to 54 years age group saw the most significant percentage increase from 11% in 2007 to 16% in 2017, an estimated increase of 384,000 households
Four in five Britons who don’t own property say they are now prioritising other financial goals over getting on the UK housing ladder.
Owning the home you live in has been declining since the start of the century. The latest government figures from the English Housing Survey, for example, found that 15 million, or 64 percent, of the estimated 23.5 million households in England were owner-occupied in 2019. That is a fall from 71 percent in 2003.
The private rented sector currently is responsible for around 4.6 million households. At just under 20 percent, that is almost double the figure in the 1990s. Just over 50 percent of them, an increasing proportion of whom have dependent children, expect to buy a property eventually.
With renting costs accounting for a third of their income compared with mortgage monthly bills worth only 18 percent, they’ll now need an average deposit of just over £42,360 to do so. This makes the thought of buying a property for themselves impossible in the near future.
Contact Dreytons to discuss your options in this ever-changing market and find out all the great benefits that our rent guarantee scheme gives you [email protected] 020 8088 0848