290,500 new homes needed per year
August 25, 2011
The UK population is expected to grow to 71.6 million by 2033 which equates to a requirement for 290,500 new homes becoming available per year to house this extra population. To put this in to context, a city the size of Coventry needs to be built every year for more than 20 years to achieve this. Currently house builders are nationally building 110,000 properties per year.
With current lack of availability of first time buyer finance options and a huge demand for property the future bodes well for investor landlords.
The key is buy to let is not expanding because new homes are available but because more people are opting to rent for personal and financial reasons. The Communities and Local Government Department figures reveal 17.4% of homes are buy to lets, up from 16.4% in 2009. Around 3.1 million homes are rental properties – an increase of 229,000 since 2009. This compared with the release of recent figures that one in six homes are in the private rented sector shows the market is primed for expansion in the rental market.
Nigel Terrington, of landlord lender Paragon Mortgages said: “More people are now relying on the private rented sector than ever before and we are certainly seeing a change in perception towards renting. The increase in rented homes is fuelled by a combination of landlords buying property with cash and buy-to-let mortgages, people letting out homes they have inherited and homeowners deciding to let their property.
“We are seeing a very different mix of tenants in the sector now. No longer is it dominated by students and young professionals, it is a much wider group including more families and mature tenants.”
This expansion of the rental sector is particularly prominent in Oxford and Witney with either large transient populations or in witney'[s case the relocation of over 2,000 families to Brize Norton over the coming 24 months.
Our Investments department has seen a renewed interest from landlords who are now keen to invest in further properties. In fact demand has increased to the point that we are offering extra investment packages to landlords to ensure that we can meet the wide range of requirements that modern professional investors require.
If you are thinking of letting your existing property, or are thinking or buy-to-let call our team today to find out how you can benefit from our award winning lettings and property management services.
Operations Director - Head Office
01865 759922 / firstname.lastname@example.org
Source: Property118, The CLG, Paragon Mortgages