Rental demand to rise over five years
CAPITAL Economics, generally seen as the gloomiest of economic forecasters, says that in less than five years’ time, 17 per cent of households will live in privately rented accommodation.
At the momet 14 per cent live in rental property. The news will be an incentive for buy-to-let investors able to access funds to increase their portfolios.
The proportion of households in private rented accommodation has been growing steadily, after standing at ten per cent in 2001.
Ed Stansfield, chief property economist, said demand was driven by students, immigrants and first-time buyers unable to access the property ladder.
He says: “We think the most likely scenario is that the sector will continue to expand.”