Wednesday, 10 June 2015

Almost A Quarter Of Sunderland Tenants Will Never Own Their Home


A recent survey from Knight Frank, has underlined the increasing dominance of the private rented sector as a form of tenure in the UK. In the largest survey of its kind ever conducted, 24% of the 3,500 private tenants surveyed expected to always rent a property

The survey found that 15% believed they would be in the sector for a further five or more years

Click the link below to read the excellent research document in full

http://content.knightfrank.com/research/707/documents/en/2014-2407.pdf



The survey, conducted with YouGov, also showed that while the difficulties in getting on to the housing ladder are an issue for many renters, whilst 32% of tenants state that they are living in the private rented sector because they like the flexibility it brings & they don’t want a mortgage and over a third (37%) of under 25's saying it suits their lifestyle, the largest reason given for renting was because of a lack of mortgage deposit (44%)

That said, the survey shows that the majority of renters do not view the private rented sector as just a short-term move

Less than a quarter of tenants expect to leave the sector within two years

The dynamics of the housing market, where supply has failed to keep up with demand which in turn has played a role in pushing up house prices, has also put home ownership beyond the reach of many young workers

This, coupled with an increasing mobile and flexible workforce, has led to rising demand for privately rented property

Off-street parking is the amenity most private tenants are prepared to pay extra for, although the survey shows fully furnished flats will attract a premium among younger renters, especially the 18-24 age group

Of course this is all good news for Landlords, as it ensures a steady demand from tenants in the years to come, and if you provide a decent property in tune with market demands you will be on to a winner

The importance of the housing stock available through the private rented sector cannot be underestimated, and many new investment landlords are taking the opportunity to build a property portfolio in these continuing times of historically low bank interest rates, and after having bought/renovated/let your first property, the next one will be a much less painful process

If you are thinking of getting into the property rental market and don't know where to start, speak to us for impartial advice and guidance to get the best return on your investment

For more information about other potential investment properties or to ask about our thoughts on your own investment choices, call me now on 0191 567 8577, email neil.whitfield@belvoirlettings.com or pop along and speak to me in person at our office in Frederick Street

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