Rental sector set to swell as more than two-thirds expect to still be renting in 3 years
The rental sector in the UK property market has been growing for some time now, with around five million households across the UK now choosing to live as tenants rather than buying their own properties. However, the PRS has yet to reach its peak, and a new report suggests it will only continue to grow further for some time to come.
According to the new tenant survey from real estate firm Knight Frank, over the last ten years, the number of homes existing in the rental market has more than doubled. And it said that in the next three years, there will be a further 24 per cent expansion of houses choosing to live in the PRS, taking overall numbers to 5.79 million households nationwide.
This prediction comes largely from the fact that the majority of people who are renting now do not see themselves moving into house purchasing any time soon. Of those who were surveyed, some 68 per cent believe they will still be renting in the next three years.
Overall, should these predictions come to fruition, it will mean that for the first time ever, a quarter of people will be private sector tenants rather than owner occupiers, further boosting the PRS and providing landlords with ever more demand for their homes.
"We expect the demand for privately rented properties will continue to grow. Official household projections show 1.14 million new households being created between 2016 and 2021," said Dr Diana Babacic, of the PRS Research Consultancy.
The demographics that make up the private rented sector are not expected to change all that much in the coming years either. According to the study, at the moment, 25 to 34-year old young professionals make up the majority of the market, and this is expected to still be the case in 2020.
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