The Chief Executive of Grainger Plc, Andrew Cunningham, stated “There will be an increase in the private renting sector in the United Kingdom”. Grainger is the United Kingdom’s largest listed specialist residential landlord. They conducted a survey and found some startling results. 54% of British people believe that in the next 15 years, more people will be renting houses as opposed to actually owning them. |
During the same survey it was revealed that 67% of Britons thought renting long term is becoming increasingly common for those living in the United Kingdom. This a rather bleak outlook on the property market as buying one’s home can be a great investment for many people.
After reviewing the current market, Grainger’s research predicts that 40 years old will be the average age that people will become first time buyers. So until reaching around that age it is expected most people will continue to rent houses which causes issues for the younger generation, a group which are seen to be the primary users of rental properties. With the first time buyer age rising and the amount of people looking to rent increasing, there are causes for concern that the younger generation could be cut off from the rental market.
One of the most likely reasons for this is because recent reports have suggested getting a mortgage is becoming increasing difficult. Nowadays they are just simply too expensive, so renting a property is becoming the more obvious alternative. However choosing to rent is not a quick fix to moving house. Tenants are placed under many restrictions by their landlords related to their conduct and maintenance of the property and face eviction or legal action if they are found in breach of any of these conditions. In the same way, landlords are obliged to certain behaviour as well. In order for tenants to protect themselves from crooked landlords, it is advised for tenants to take out tenant insurance .
As many people have resorted to this course of action in the property market, the demand for rental properties far exceeds the supply available. On average the amount of properties available, rises at about 158,000 each year. This equates to the substantially low percentage of 0.7% every year.
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