London’s ever-evolving property landscape will soon change even further with the construction of more than 30,000 build-to-rent homes. Savvy new developers are strategically targeting Crossrail hotspots across the city in their quest to offer rental schemes and build-to-rent properties.
It is predicted that London will follow in the footsteps of cities such as Amsterdam, Brussels, Berlin and Paris where private tenants make up almost 60% of the households. In 2000, approximately 60% of London residents owned their properties, but this is expected to fall to 40% by 2025. The decrease in private ownership will represent the end of a century-long trend toward rising rates of home ownership.
Soaring house prices and high demands from lenders have created a market void that developers can fill. Along with the 30,000 new rental developments that are currently under construction there are many more in the pipeline as well as a host of individual developers currently seeking potential plots in and around the capital.
Demand for rental accommodation is expected to increase by 1.1 million households over the next five years. Many developers have been restricted in their location choice due to the high price of central city land but this spells good news for both the developers and the renters that have also been priced out of the city.
Developers are looking further afield and focusing on areas in close proximity to tube stations and bus services along with those that will benefit from the construction and opening of Crossrail in 2018.
Many young professionals have stated how pleased they are to have made the move to renting. The vast availability of rental accommodation has slashed the commute for many workers and changed their perception of renting as the second-best option to a viable and enjoyable way of living.
As leading London letting agents dealing with rentals, lettings, investments and council leasing in Tower Hamlets and beyond, we have full insight into the rental market in the capital and we provide a wide range of developers, landlords and investors with a comprehensive service. Our skilled team can offer a range of investor services as well as full assistance to buy-to-let landlords.