A leading estate agents in Tunbridge Wells claims the demand for private rentals in the borough is unlikely to ‘diminish’.
Savills say that despite the intentions behind government initiatives such as Help To Buy and Starter Homes – designed to get young people onto the property ladder – the need for lets is simply going to carry on growing.
According to the firm – which specialises in high end properties – research shows the level of home-ownership falling away.
A study by the Council of Mortgage Lenders reveals that 64 per cent of households born in either 1960 or 1970 owned their own home by the age of 35.
This falls to 44 per cent for those born in 1980 and the prediction is that only 39 per cent of those born in 1990 will own their home by the age of 35.
This coincides with the age at which many young adults are having families, thus increasing demand within the family house market.
Jade Carter, head of lettings at Savills Tunbridge Wells, said: “Throughout the course of this year, we have seen the highest demand for three to four bedroom family homes, on average around half our total applicant base is looking to secure a home in the £2,000 to £3,000 per month price bracket.
“This also happens to be where we have seen stock levels at the lowest, with very little available new property coming to the market – a situation exacerbated by many taking the decision to renew their current leases in uncertainty caused by the lead up to the general election in May.
“We would advise anyone with a three to four bedroom family house who may be considering letting it, to contact us for a free market appraisal. Given that many applicants begin their search two to three months in advance, those considering letting in the spring need to talk to us now.”
The private rental sector has reported a 41 per cent increase in demand in the third quarter of 2015.
John Heron, Director of Mortgages at Paragon Mortgages, said: “The figures reflect a steadily improving economic outlook for the UK as a whole and show that, more and more people are actively choosing the flexibility of making a home in the private rented sector.”
Traditionally, a nation of homeowners, changing attitudes towards homeownership is one of a number of factors that is accelerating the growth of the PRS.
By 2025, it is estimated over half of Britain’s 20 to 39-year-olds will be renting property in the sector and this is driving significant levels of institutional investment in key cities.
• Demand for private rented sector property across the UK grew by 41 per cent the third quarter of 2015
• One in 10 investors reported 10 per cent yields, with the highest yields found in Yorkshire cities such as York
• Over 50 per cent of 20 to 39-year-olds in the UK will be renting in the private rented sector by 2025 – meaning the time to invest is now.
Source: Paragon Mortgages