Rental property is an ever popular investment option across the UK. Even in the face of changing economic and political environments, people continue to view property as a wise and profitable investment option.
The rental property market has changed considerably since the introduction of buy to let mortgages in 1996. The property specialists at Abacus Solicitors have taken a look at how the rental market has changed over the years, and what can be expected to change in the future.
How does the UK rental market look for tenants?
Although from the infographic above, its easy to see how landlords will be impacted by changes to the rental market in coming years, what will this look like for tenants who rely on rented property?
Increasing rent
Rent will undoubtedly increase across the board over the years to come, resulting in the average UK rent reaching over £1,000 per month. This may make renting property more difficult to afford, and will force more renters to move into shared flats or houses. Increasing rent will also put a strain on most people’s income, leaving them with less disposable income to spend at the end of each month.
More choice of properties
As increasing numbers of properties are bought by buy to let investors, this will give renters a wider choice of homes to choose from, in an increasing number of areas across the country. As the percentage of UK properties being rented out increases, this will leave those looking to purchase a home with fewer options, particularly in towns, cities and within commuter belts.
Further difficulty getting onto the property ladder
As rents increase and more properties are bought for investment purposes, renters will find it increasingly difficult both to save for a deposit and find a suitable property for purchase. This will mean that adults will be forced to rent property for longer, and may not be able to purchase a property until much later in life. Increasing numbers of people will be forced to rely on ‘the bank of mum and dad’ when getting onto the property ladder, or make the most of government schemes such as help to buy, or shared ownership properties.
These predictions paint a gloomy picture of life for renters over years to come, whilst landlords and buy to let investors will reap the rewards and boost their earnings. However, with an uncertain political and economic climate owing to Brexit, we may find that these predictions need to be updated and changed in the future.
