The number of people renting in the UK will grow by over a million in the next five years, according to a new report. A study conducted by YouGov on behalf of Savills revealed more and more people are choosing to rent, with the most up-to-date figures showing there were 4.3 million households in the private rented sector in the UK in 2011. What's more, Britons are renting for longer, Property Wire reported.
Among the 2,300 tenants surveyed, the desire for longer tenancies was seen to be greatest in those over 35. Conversely, younger tenants prefer flexibility from their rental agreements. While the biggest group of private tenants is between 25 and 34, the fastest growing group is aged between 25 and 34, the news portal revealed. This is what is known as 'generation rent' and many in this bracket will never own their own home, even when they have a family.
The research also found that a lack of supply, coupled with high demand, is driving up rents. This makes the market incredibly attractive for those looking for property investment opportunities. However, the shortage of rental property is forcing some tenants into sub-standard accommodation, Property Wire explained. Unsurprisingly, better quality housing was the reason why many renters chose to move. Margaret Street, director of residential research at Savills, told the news provider: "We interpret this as a search for better standard of accommodation, better design and higher specification."
The government is taking steps to adapt the rental market to the needs of modern renters. It is introducing family friendly tenancies, which will provide longer, fixed-term contracts and raise industry standards. Officials hope this will give Britons the ability to enjoy greater stability, avoid hidden fees and demand a fair deal from their landlord or letting agent. Efforts are also being made to increase the construction of rental properties, in a bid to create the additional stock needed to stop price inflation.
Communities secretary Eric Pickles said: "The private rented market is a vital asset to this country, and plays an important role providing flexible accommodation for those who do not want to buy, or are saving up for a deposit. The last thing we want to do is hurt hard-working tenants by increasing costs and strangling the sector with red tape. But families deserve stability for their children, and all tenants deserve a good and transparent service from their landlords and lettings agents."
Want to know why the housing market is in this state? Read this report uncovering the facts behind 40+ years of housing data
- Tuesday 10 December 2013