The demand for houses to rent is increasing in spite of government changes and challenges in the ‘buy-to-let’ market. These challenges, including tougher affordability checks for buy-to-let mortgages and withdrawal of tax relief on mortgage interest, are likely to slow down the market but not stop it completely.
In fact, the number of rental properties entering the UK market has risen almost 60% for UK towns and cities. We predict a 15% increase over the next three years, as rents are rising, albeit slowly.
Affordability Costs
Comprising six million households nationally, 86% of our tenants are renting due to being unable to afford a deposit to buy a property. Approximately two-thirds of UK tenants, according to a Labour-backed inquiry, don’t believe they’ll be able to afford mortgage in the next five years.
This inquiry involved professionals, students, families, and migrant workers who are struggling to buy a property. In the next 12 months, they plan on renting instead. Although a House of Lords committee ordered 300,000 new homes to be built each year in England, only around 190,000 new properties were built in 2015-2016.
The Housing Sector in 2017
Dorian Gonsalves, Belvoir’s managing director, states that a closer relationship is needed with Westminster. He adds that “the private rented sector plugs a serious gap and provides essential good quality, affordable housing for a modern generation of tenants while opening up new opportunities for people who can invest in ‘buy-to-let’ properties.”
In the new year, Belvoir will keep working closely with decision makers in order to help create new incentives for the increased supply of rented housing stock. It’s expected that this will benefit millions of private tenants in the next 12 months
Renting in 2017 will increasingly be an alternative to home ownership, while landlords will still have to consider the right price and marketability for their properties. For this careful market analysis, an expert view is essential. Here at Belvoir Sutton Coldfield we know how important it is to separate opportunities from potential bad decisions.
With over 300 collective offices in the country, we are confident in our capacity to improve both tenants’ and landlords’ prospects. Simply get in touch with us on 0121 321 3388 to speak to our experts; our friendly team is always happy to help and to answer any query you might have!
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