How renting is becoming the norm

How renting is becoming the norm

New research from the Resolution Foundation, the award-winning think tank that focuses on living standards, has revealed how renting is becoming the ‘norm’ for a large number of young people across the UK.

Whilst for the first time in 30 years there has actually been a rise in young families becoming homeowners, the role of the rental market in the UK continues to grow apace. As more young people are increasingly priced out of the market due to high house prices, the flexibility of renting has proved to be attractive for many young people who don’t want to be tied down to the long-term commitment of a mortgage.

Across the UK, the Resolution Foundation has reported that 34% of young families now rent properties compared to the last 1980s when it was only 9%. The prevalence of renting is particularly high across major UK cities such as Birmingham, Manchester, Liverpool and Brighton, where less than 20% of young families own their homes.

Conversely, while the demand for rental properties continues to increase, the supply of properties is still well below what it needs to be. The latest report from the Ministry of Housing shows that there was a fall of 46,000 available rental properties on the market in 2017 and this trend is continuing.

For investors, this highlights the strong opportunities that still exist in the rental sector to achieve attractive yields in an undersupplied market.