As first-time buyers continue to struggle to get onto the housing ladder, forecasts suggest that 2017 might be the first year in eight decades where property rentals will outstrip property sales.
With the cooldown after the Brexit vote, the lack in supply and the increase in prices, activity in buying property has experienced a slow dip as of recent, the UK’s largest estate agent, Countrywide, has revealed.
Johnny Morris, research director at Countrywide, said: “As some would-be buyers and sellers sit on their hands, Brexit-induced uncertainty has continued to boost the rental market … September saw record activity, with increasing numbers of lets agreed and tenants choosing to renew their contracts. On current trends 2017 could be the first time since the 1930s that more homes are let than sold.”
Being able to buy a home is becoming increasingly more difficult for would-be buyers with prices going up steadily.
On top of that, the new stamp duty surcharge has led to a boom in buy-to-let purchases earlier in the year, which then led to a bigger amount of rental properties available to tenants.
“The shift between the number of properties being offered for rent and sale has been a long-term trend, boosted a bit by stamp duty and a bit by the Brexit vote,” he added. Morris said that when informally advertised lets were taken into account, the rental market may have already outgrown the sales market.
With the rental market growing at such a fast pace, the industry needs to start focusing on offering the right kind of property for its tenants: Away from traditional small portfolio landlords renting out their old home to a more professional approach offering tenants the best value and service for their rent.