An Englishman’s home is his castle is a phrase that is no longer holding true for many people. Historically the UK has always been a country that is obsessed with homeownership but in recent times, this attitude has shifted somewhat.
With the lack of supply for affordable homes and the difficulties many people face in getting mortgages, rental property has now become the norm, especially for younger people.
The flexibility that renting affords has become a relatively attractive proposition for young people, especially in city centre locations where there is a desire to live close to work and enjoy the convenience of being close to shops and entertainment.
Savills estimate that 75% of workers are prepared to relocate to cities to find work and approximately 25% of 16 to 34 year olds expect to have around 12 jobs in their career. This means that pinning themselves down to home ownership is no longer a goal for many young people and renting allows them to be more transient about where they live and the kind of lifestyle they lead.
By 2025, home ownership levels could fall to around 60%, compared to 69% at the start of the millennium. This is a trend that investors cannot ignore and with rental yields up by an average of 3.8% across the UK in 2015, buy-to-let investment is forecast to grow further over the next 10 years, despite the 3% hike in stamp duty. In fact, it is predicted that by 2025 that an additional 1.8 million households will be renting in the UK and that accounts for a nearly 25% of British households.
The lack of housing supply in the UK, the new pension reforms and the shift in attitudes towards home ownership has created unprecedented interest in buy-to-let investment. To find out where the best buy-to-let opportunities are, please contact us now.