As the housing shortage continues to send tenants into the arms of residential landlords, property investors with an interest in landlord insurance are being urged to consider arranging long term leases and improving their properties if they want to get the greatest benefit out of an ever increasing market.
A recent report from the housing industry shows the average age of a first time buyer is now 39, mainly as a result of the strict lending terms banks are still demanding to hand out a loan with a reasonable interest rate. It is frustrating time for young UK residents who, according to Matt Hutchinson from SpareRoom.co.uk, are still hankering for a place of their own just like their parents, but are more and more unlikely to achieve the goal. He said: “There is a lot of pressure on Brits to own their own homes, even though in the current market there are numerous barriers to entry, especially for the younger generation. Soaring living costs mean it’s a struggle for many households just to keep their heads above water each month, let alone have enough spare cash to put aside towards a deposit.”
In fact research from the Joseph Rowntree Foundation suggests an estimated 1.5 million people young people who are unable to access home ownership or social renting will be forced into looking for private residential tenancies in the next few years meaning good quality accommodation will be even more sought after. Letting agencies and companies like SpareRoom.co.uk now believe that as the numbers of tenants increase and UK residents become resigned to the fact they may be renting long term, landlords and the letting industry should be recognising the value a long term tenant provides and should aim to offer better accommodation with better conditions and rents that reflect the security a long term tenant offers.