Six million Brits will need rental property by 2025

Six million Brits will need rental property by 2025

New research from Hampton International, one of the UK’s leading estate and letting agents, has revealed that by 2025 up to six million Brits will be requiring access to rental property. And as early as 2022, 20.5% of UK households will be renting, up from the current levels of 19.4%.

A staggering £21 billion of purpose-built rental property was bought in 2017, as more and more Brits are turning to the rental market. Whether through being priced out of the housing market or making the choice that renting simply gives you more flexibility, the PRS sector is now regarded as the primary market for many Brits, especially millennials.

In particular, the research highlighted the major growth in the ‘build-to-rent’ market which is helping to fill the gap for many aspirational renters. These purpose-built properties, which are funded by private and institutional investors, demonstrate the increased focus on high-quality rental properties and the need for better management standards to support the growing army of tenants.

With approximately 100,000 build-to-rent units in the pipeline, the research also shows that there are significant amounts of wealth underpinning the sector. Around 65% of investor purchases in build-to-rent in 2017 were made with cash, making a sizeable contribution to the £21 billion spent.

For investors, build-to-rent appears to offer a strong opportunity for many years to come.