In the last ten years, the UK’s private rented sector has seen a rapid rise in stock, according to the latest report released this week by Countrywide.
It said that much of the stock that has come into the market in the last decade has been from the investment made by people across the UK into new builds specifically for the purpose of renting them out.
In the ten years since 2005, Countrywide said, approximately three million homes have come into the private rented sector. Half of these have come from homes that used to be owner occupied, but have since changed hands and gone into the rental market.
In addition to this, mostly all of the remaining 1.5 million homes have come from landlords investing in new build units that were constructed with the private rental sector in mind.
Across the last few years in particular, there has been a swell in the number of people investing in off-plan and below market value blocks with companies like Experience Invest, which has helped swell the number of homes available on the market.
These types of property allow people to purchase units in a larger block, before they are managed by the company, which deals with things like tenancies and maintenance and repairs. They often also offer a guaranteed return for the first few years, which gives owners peace of mind about the robustness of their investment.
Johnny Morris, director of research at Countrywide, said that the rapid growth of the rental market and the demand caused by a drop in the number of people who owned their own home meant that new stock “had to come from somewhere”.
And as the market continues to grow in the next few years, we should continue to see more homes come into the sector, both from landlords investing in new builds and existing homes making the jump in tenure from owner occupier to sitting tenant.
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