More people 'set to rent in 2014'

by Sarah Ashcroft

An increased number of people are set to opt to rent a home rather than buy one over the course of the next year.

That is the prediction of Belvoir Lettings, which said that demand in the rental sector is set to soar as more Britons rent rather than buy a property in 2014.

Indeed, it suggested that some estimates point to around 20 per cent of homes in the UK being lived in by tenants by 2021, as Britain starts to become a nation of renters - just like several of its European neighbours have been for some time.

Dorian Gonsalves, chief executive of the firm, said that there are now real signs that the housing market is bouncing back and a 25 per cent boom in the buy-to-let market is likely in the near future. The industry is also expecting to see more investment-minded landlords come forward in a bid to capitalise on this opportunity.

"We predict that buy-to-let will become increasingly attractive and accessible for smaller investors who want to add another asset class alongside their existing savings and pension portfolios," he stated.

Prior to 2008, landlords often looked not only for rental income, but also the chance to make money on their properties in the form of rapidly rising house prices - and this could soon be the case once again.

"We now anticipate that over the next few years, new rented housing stock will come from different directions, partially from institutional investors returning to the market to provide much needed funding," Mr Gonsalves added.

Despite the overlying positivity for landlords in the UK, the expert warned that there are still some parts of the country where rental income has struggled to keep up with inflation in recent times.

But demand can be relied upon in 2014, with Belvoir noting that more people are taking the decision to rent because it offers good value and security.

Published on: January 15, 2014

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