The demand for private rented accommodation remains strong, a ResidentialLandlord.com article from April 2017 has discussed.
In 2003, 71% of households owned their own homes, but this has now dropped to 63%. Part of the reason for this is that people are taking longer to save for a deposit on a house. While saving for a house deposit, most young people are renting their accommodation.
According to ResidentialLandlord.com, most landlords are responsible and provide quality accommodation for tenants. There are approximately one million families with children renting in the private sector and this number is expected to rise. There is very high demand in areas where good schools are located. Families renting in these areas are likely to stay long term, and pay the landlord high rents.
Some young people are finding it difficult to rent accommodation. There is no automatic entitlement to the housing element of the Universal Credit for people aged between 18 and 21. A recent survey by the Residential Landlords Association found that 76% of landlords were reluctant to property to the under 21s because they fear that they cannot afford the rents. However, there are some landlords who are willing to help young vulnerable people who cannot live in the family home.
The high demand for rented property is expected to continue in the near future. There are still landlords investing in the buy-to-let market despite increases in their costs due to stamp duty rises and cuts to tax benefits on commercial mortgage interest payments.