With the average house price expected to rise to £360,000 by 2020, it is predicted that most people under the age of 40 will be renting in 2025. It is also likely that there will be many more older people than ever before who own their home outright, which will account for almost 35% of households. According to analysis by multinational accounting firm PricewaterhouseCoopers, the overall UK owner occupation rate is expected to drop from a peak of almost 70% prior to the financial crisis to almost 60% of households in the next ten years.
House prices have risen at a greater rate than earnings and the availability of housing remains constrained. This means that the number of households that have transferred to the private rented sector has doubled in the last 14 years. This trend is predicted to go on and we are expecting to see a further 1.8 million households become private renters by 2020. This would take the total UK figure to almost 7.2 million households which works out at almost 1 in 4.
The trend is significantly strong amongst people in the 20 to 39 age bracket. The people that will own their homes outright will also increase. The main driver of this however is the growing proportion of people aged 60+ in the UK who come 2025 are much more likely to have paid off their mortgages. In short, we are likely to see the market condition that led to the emergence of a generation of private renters sustained for the next decade.
We offer a selection of comprehensive services to landlords, investors, developers and tenants, helping them to deal with the ever-changing property market in the capital and beyond. If you are looking to enter the private rental market as a landlord, you wish to expand your portfolio, or you are looking for a new home to rent, we can assist you with a proficient service and act as your lettings agent in Hounslow or any other area.