There are a number of factors at play here. While on the one hand increasing property prices are making it harder for people to get onto the property ladder; on the other, more and more people are renting as a concerted choice.
The annual report cited a number of influences: 21% of those surveyed said they chose to rent because it allowed them to live in an area where they could not afford to buy; 18% calculated that renting was more affordable than paying a mortgage; 8% said they were renting because they did not want the responsibility of owning a home; 6% need the flexibility because of work and 5% do not want to be stuck in one location.
“The flexibility that renting offers has reinforced its popularity as both a sensible and accepted solution for young couples without children and those living on their own, but also highlights an expected rise in older households over the next five years.” says Tim Hyatt, Head of Residential Lettings at Knight Frank.
By 2022, 24% of all UK households are set to be renting, which would make the private rental sector (PRS) market worth an estimated £70bn. It’s a market that shows considerable signs of growth and is why investing in property remains one of the most popular forms of investment. Reassuring news for Landlords indeed.
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