Last month, starting research revealed that almost 60% of Londoners will be renting property within nine years. Research shows that young people will be the ones mostly hit by this trend: only 26% of those currently aged 20-39 will own their house by 2025. With a forecast that the rental market in the UK as a whole will grow by 14,5%, the trend towards renting is expected to expand nation-wide.
High prices and low levels of house building combined with house price inflation that is outstripping wages have pushed ownership out of reach for many people. A number of schemes have been introduced by Central Government to help first-time buyers and counter the shortage of affordable housing, including Help to Buy, Help to Buy ISAs and Starter Homes.
However, the prediction of rental growth also comes at the same time as the Chancellor’s clamp down on tax reliefs for buy-to-let investors. Experts are warning that this is leading to a crisis of confidence within the industry. A recent survey from The National Landlords Association found that nearly one in five landlords are looking to sell some property in the next 12 months, this represented a rise of 7% from July last year.
A mixed bag indeed; It seems that greater rental demand predicted by the figures may come at a price for landlords, yet in turn home-buyers may find more affordable properties available as landlords look to release some of their assets. One thing’s for sure; we'll be watching closely. For advice on buy-to-let investments or buying a home, email email@example.com, call 0151 236 6611 or come on in to 63-67 Tithebarn Street, Liverpool, L2 2EN.