Demand for private rented property is soaring, but the supply of available stock on the market is unable to keep up.
In 2016-17, 4.7m households lived in the private rented property sector, representing 20% of all households in England. However, Knight Frank predicts that by 2021 this will rise to just under one in every four – or 5.79m households. With a restricted pipeline of new housing stock due to come to market, private sector rents are predicted to rise, potentially by as much as 15% between 2018 and 2023.
Faced with consistently high levels of demand, as high property prices push more prospective homeowners out of the market, many households in the UK are turning to the private rented sector. This is especially true of younger people aged 25-34, whose homeownership rates over the last twenty years have plummeted.
To satisfy the unprecedented need for rented housing, the government is throwing its full weight behind the build-to-rent industry. Developments purpose-built for renting are crafted to cater to the needs of the modern tenant, especially young professional commuters who prioritise comfortable city living with easy access to transport facilities.