Demand for UK Rental Property Rises


Rental Property Investment Needed in Key UK Markets

Keep up to date with the latest property news by reading Junaid Iqbal Memon blog below. Junaid is property developer based in London and Dubai. A prolific businessman who is always looking out for lucrative investment opportunities, he founded the Cloud 9 Group in 2014 upon seeing the potential of the property market in Dubai and London. At present, he manages and owns a number of businesses.

junaid iqbal memonNew research has revealed that about a third of the young people in the UK are going to rent a place for their entire lives. This means that there is an even more need for more rental investment in various key city markets in the country.

A recent report showed that out of the volume of people who are presently using the private rental sector in the country, a third of them is likely going to remain in rental units for the rest of their lives. Meanwhile, more than 40% if the people in the UK who were born between the 1980 and 1966 are going to be renting a place for their residence by the time they reach the age of 30.

There is growing evidence to show that Britain may be becoming a nation of renters. A new report highlights the growing importance of the UK’s private rental sector, particularly among the younger generations in the country. One-third of millennials, or those that were born between 1980 to 1996, are expected to rent a place for their entire lives.  More than 405 are also expected to remain to rent even when they reach the age of 30. This is twice as many as those who are tagged as Generation X or those born between the years 1965 and 1980.

This is one trend though that is not just limited to the young in the UK. For the last 15 years, the number of families in the UK that are living in private rental units have significantly tripled. As of now, a total of 18 million families are renting their homes.

There are usually two narratives to explain this rise in rental demand in the country. On one hand, there are many people that want to buy a home but are relying on renting to help them save as much money as they can so as to finally get up the property ladder. However, to many young workers, renting is now becoming a more preferred choice thanks to the flexibility that it provides in terms of pursuing a more transient lifestyle.

Regardless though, these two scenarios are putting considerable strains to the rental market in the country. This is especially true for those cities that have the most profound demand for rental accommodations. There is also an increase in the need to not just deliver greater numbers of properties, but good quality ones as well.

In Manchester alone, population growth is 15 times more than the rate of the new houses that are presently being built. Add to that the fact that the city is home to one of the country’s youngest population, it is indeed one area where the demand for the rental sector is considerably high. By the year 2022, only 25% of the annual demand for residential housing in Manchester will be met.

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