Private renting as home ownership fades
Rents have fallen in November, the first time since March which is still 3.4% higher than there were last year November. This is showing signs that Britain is now turning to the private rented sector, highlighted by the latest Census figures.
The LSL rent survey, which measures the prices of rents, stats the average rent was £741. South East had the largest fall of 1.9% which was the regions first monthly decline since February. So this shows that property ownership has dropped to 64% among households in the UK, with the numbers of private tenants rising sharply.
The National Census stats, 14.9m households are owned – either outright or with a mortgage – their own properties last year, was a decrease of 4% since the year 2001. Considering that, in 2011, 3,566,000 properties were still up in the private rented sector, up to 9% from the 1,889,000 a decade earlier.
As the rents have risen Wales, Yorkshire and Humber. Have shown the quickest growth, when London has only grown 0.2%. The private rented properties represent 15% of all households.
Over the same ten year period, the proportion of properties to be rented by the councils fell from 2,868 in 2011 – 13% of the population – to 2,208,000, or 11% of the population. It is totally reasonable to predict that rents will be higher than a year ago; this is true for all areas excluding Wales. So the rental growth in London was the highest at a 6.9% rise than in last November, which hit a new recorded high of £1,104
The drop in property ownership is due to the large dip in the number of properties being bought through a mortgage; also the figures of the number of people who own their own home outright have risen. I would strongly suggest that you employ a Landlord Manager just for your own safety, A total of 31% of the population in United Kingdom now own their own property outright, compared with the 29% ten years ago (7.2m compared with 6.4m).
The population in March 2011 was 56.1m, which was a 7% increase equating to 3.7m people, from 2011.
The foreign-born residents living within the United Kingdom grew from 4.6m in 2011 to 7.5m last year, and one in six of the total population in of the UK were aged 65 or over (16% or 9.2m people).
“Firstly, through the early 90s we all saw the rising house prices: while this was good for many existing property owners, it just raised the bar too high for most of the first-time buyers.”
And this is a prime example why it would be more feasible to rent your property rather than to sell the property. That is why I would advise you to Landlord ManagerBecome a Landlord, and to insure a stress free renting period. Please investigate your local estate agents so you can research the Landlord Solutions they can offer you.
“In 2007 we saw the beginning of the credit crunch, and in the years that have followed the mortgage availability has fallen, in short, it is near impossible to secure a mortgage.”
“It’s the private rental sector that is absorbing this shift and is providing alternative letting options. Private landlords are playing a very essential duty at the moment and this is likely to last for some time.”
LSL survey has estimated that late and unpaid rent fell to its lowest level since June 2010, with the total arrears totaling £241m, down from £265m in October. This equates to 7.4% of all rent across the UK. To avoid your own tenants falling into arrears please consider employing a Landlord Property Management, so you can sign on to a Rent Guaranteed Scheme.
Thank you for reading this article, I hope you have found this article useful. As always I would strongly suggest seeking professional advice.
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