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The buy to let sector is bigger than ever, but whilst the number of tenants looking for rental homes is on the up, in some areas there is a real shortage of affordable homes to rent. Previously, the rental sector has largely been the domain of young people at the start of their careers who did not yet have
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the available funds to be able to afford a mortgage, but the tenant demographic in the buy to let market is rapidly changing.
Changes in the Buy to Let Market
According to Experian, a big shift in the types of tenants looking for buy to let accommodation is affecting the market as a whole. There are now increasing numbers of middle-aged tenants seeking rental accommodation, and because they are generally more affluent they are in a better position to rent affordable properties in city centres. This is forcing younger tenants into outlying areas and properties they would not ordinarily consider.
Rental Market Expansion
“A rapid expansion in the rental sector has, for the first time, reversed almost 100 years of rising owner occupation. Renting is no longer the preserve of the young career starters but we increasingly see groups of older people and people of varied wealth joining them,” said Nigel Wilson from Experian.
“A prolonged stay on the bottom of the property ladder creates a shortage of supply for newcomers, forcing them to seek alternative options. This is amply demonstrated by a recorded increase in the length of residency for younger families in starter homes, rising to 11 years from five, forcing others to look to rent property as a first step.”
