Demand for UK rental properties remains strong as three quarters of renters can’t afford to buy
Research conducted by property website Rightmove has given a boost to landlords and property investors as rental demand is expected to remain bouyant as three quarters of UK renters say that they cannot afford to purchase a home.
The poll determined that the key motivating factor in renting was because respondents could not afford to buy, with 75% of those asked giving this answer. This was by far the most prevalent response, with those choosing to rent to live close to work only making up for 10% of answers.
In line with strong rental demand, Rightmove demonstrated that by April 2019, the avergae rents in London increased by 8.2% over the previous year.
In addition to a rental population who cannot afford to buy, available rental properties in London fell by one third compared to two years ago, while availability dropped by 13% throughout the rest of Great Britain. Such a fall in supply of available rental property creating a strong environment for landlords to thrive in.
Rightmove’s property expert Miles Shipside said: “Saving a deposit to buy your own home, alongside all the other expenses of modern life, means many people feel trapped as a renter. This survey clearly shows that whilst renting is a lifestyle choice for some, it’s the only fall-back option for many
The irony is that with interest rates so low, buying can stack up well against the costs of renting if you can get over the deposit hurdle.”
With many landlords leaving the market due to higher stamp duty payable on second homes and various tax increased, fewer investors in the buy to let market has deepened the lack of supply leading to rising rents.
These factors have led to an attractive rental environment for those landlords and property investors who are able to find value and buy well in the market which shows no signs of slowing down.