It has been reported that nearly 60% of the 3.2 million homes in UK’s private rental sector are managed by letting agents, in an industry that could be worth £6bn. It is also reported that more and more young UK professionals are choosing to rent rather than buy.
Further to a survey carried out by the National Foundation for Credit Counselling, the long-term belief that home ownership is a certain way of building wealth and equity might be changing. Of those people surveyed, almost 50% no longer believe that owning a home is a realistic way to build wealth.
The Residential Landlords Association concluded that the UK’s private rental sector will continue to grow for the foreseeable future, with more people attracted to the flexibility and affordability of renting.
Analysts predict that one in five Britons will rent a home by the end of 2020.
Certain factors such a growth in single parent households, higher divorce rates, an ageing population and the continuing flow of immigration will all contribute to increasing demands for future rented accommodation.
Should the property rental market increase to the size of that of the majority of countries in Europe, where renting is currently more popular than buying, then the opportunity for a new letting agent to take advantage of such growth in the UK is enormous.