According to new research, the proportion of households living in the Private Rented Sector (PRS) will rise to 24% over the next four years.
The Knight Frank Multihousing Report has suggested that some 5.79 million households will be private renters by the end of 2021.
The survey of over 10,000 tenants revealed that 68% expect to still be living in the PRS in three years’ time.
The young professional demographic, 25-34-year-olds, make up the largest proportion of private renters.
The biggest concerns for tenants are affordability, location and then the rental property itself.
Tim Hyatt, head of residential lettings at Knight Frank, said:
“The flexibility that renting offers has reinforced its popularity as both a sensible and accepted solution for young couples without children and those living on their own but also highlights an expected rise in older households over the next five years.”
“The number of people renting out of choice rather than due to affordability of ownership constraints is an interesting indicator of how the market will continue to thrive in terms of tenant demand.”
Institutional investment in the PRS is set to rise to £70 billion over the next five years, according to the research. The changes in recent years, including the 3% stamp duty surcharge and the restriction of BTL mortgage interest tax relief, have made institutional, large scale investment in the PRS more appealing.
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