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Studies have shown that the supply of privately rented homes in London has been declining over the past couple of years. Across the UK the number of private rented homes will need to increase by 227,00 per year to meet the Government's targets of 340,000.
The report by economics consultancy Capital Economics and commissioned by the National Residential Landlords Association has confirmed that there's a lack of supply of rented homes across London.
London is an attractive, vibrant and outgoing city with a very work hard play hard environment. London offers not only culture and tourist attractions but a contact hustle with many opportunities for learning new career paths and British culture. London, in particular, attracts young adults due to the creativity, nightlife, good food, stunning homes and social life: no wonder the demand is high for homes.
Private renting is popular amongst young individuals who have left university or started a new career and are ready to make that first big step to having their own home; this means that demand for renting homes will always increase. Young individuals will especially be looking to rent as their first home especially, in pricey areas like London. The 15-24 cohort in London is forecast to grow between now and 2030 by over 120,000 (almost 12%).
One of many notorious tourist attractions Central London has to offer
Capital Economics has set the goal of meeting the housing demand targets through encouraging more private landlords in London. Arguably there will always be a demand for homes so it would therefore be a good investment for private landlords. Another way to meet demand will be increasing new builds around the UK and encouraging these to be for residential use only. A large proportion of homes around the Capital are for commercial use as they tend to return more gross revenue with less work for the Landlord. However, Commercial investing is risky for Landlords and it can take a long time to find tendons which result in many builds being left empty. The market could also potentially crash: if we look at the past years with Covid-19 for an example, homes can easily drop in value for a long period of time.
Austin Homes, CEO of Austin Homes London Says, “After the recent pandemic, we have seen a huge increase in the demand for private rental properties across London. We have a crucial role here at Austin Homes London to provide and source the homes that people want and need.”
Miss. Claire White
W. Why Media
E. claire@whymedia.com