A government survey out this week reveals that 1 in 6 of the nations homes are now occupied by tenants, proof that the private rented sector is booming like never before and property investors willing to take a chance in the housing sector are reaping massive rewards.
The figures show that homes under tenure have gone from 1.8 million at the turn of the century to a startling 3.9 million today, an increase of well over 100%. For many months now landlords looking to buy a landlord insurance quote on new properties have been the major players in the housing sector, a figure borne out by the Council of Mortgage Lenders latest set of figures which shows 32,000 mortgages in the second quarter of 2011 were buy-to-let loans. This is a massive 21% increase.
With landlords across the country who have property insurance for landlords, and are reporting monthly rental rates and people from all walks of life now finding that renting seems to be their best option, the future still looks very bright for property investors.
Nigel Terrington, the chief executive of one of the major buy-to-let lenders, said “The increase in PRS 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. The mix of people renting has become increasingly diverse and no longer dominated by students and young professionals.”
The demand for good rented accommodation still seems to be outstripping supply and the forecast that the UK will soon become a nation where most people are tenants rather than owner occupiers seems a distinct possibility.