An interesting piece of research sure to please buy-to-let landlords suggests that four in ten tenants expect to be renting for up to a decade.
The survey was commissioned by property and construction consultants McBains Cooper and is sure to give the build-to-rent market a shot in the arm.
Quizzing over 2,000 people, the survey revealed that one in four people devote over 40% of their income towards funding rental accommodation.
In addition, the study showed that renters look for more traditional factors when choosing a rental property, such as size of rooms, affordability and outdoor space. These factors were found to be more important than shared amenities such as sports facilities or communal room.
Michael Thirkettle, chief executive of McBains Cooper, noted: ‘Our survey shows that renting for the longer term is becoming more common. For some it might be because they are priced out of the housing market, for others, it may also reflect a more continental attitude where people are content to rent rather than buy. Either way, the potential for PRS and build-to-rent is clear.’
‘The findings will be of particular interest to investors and developers in the PRS and build-to-rent sector. Interestingly, a high proportion of the older generation are now long-term renters. This might reflect the more ‘traditional’ characteristics in terms of the most important factors people look for when choosing rented accommodation – such as room size and a garden or outdoor space, as opposed to amenities like sports facilities or a cinema and internal communal spaces,’ he continued.
Longer-term tenancies are increasing
Further analysis from Savills suggests that demand for rental properties will increase by over one million households during the next five years, despite Government measures intended to help more buyers get onto the ladder.
The Government has set a target of building 400,000 new affordable homes for sale over the course of this current parliament. However, Savills forecasts that Britain will require an extra 220,000 homes for rent per year.
Susan Emmett, director of residential research at Savills, said: ‘Demand for rented homes could still rise more sharply than we have forecast. Government policy should focus on supporting the development of new homes to rent as well as to buy.’