The idea of a “typical tenant” has disappeared from the UK’s private rented sector. Middle-aged professionals are now renting alongside teenage students in a market that has turned on its head.
Society is changing, as well as the effect of the current housing crisis the private rented sector is very different to 18 years ago when we started letting houses. Divorce, redundancy, and relocation are now common reasons for renting a home as well as the usual new relationships and moving out of home. As property prices carry on rising and availability continues to fall many older people are using the private rented sector to allow them to downsize.
New figures show 18% of people in the East Midlands now rent a property. The private rented sector is a vital part of the housing market. New build targets are not being met and the increase in the price of an average UK home is squeezing out all but the most affluent buyer.
The tenant demographic is much broader than in the past for several reasons. The average age of a first time buyer is 30 so many more young people are renting for longer before making the step into home ownership.
Employment opportunities are not as secure as they used to be and in a rented property there is a lot more opportunity to move areas if you need to. If you have managed to save up enough for a deposit and you wish to apply for a mortgage it can be difficult if you are on a temporary contract; and even harder if it is a zero hours contract - no matter how many hours you regularly work.
Many of our tenants are in fact landlords themselves. They may be renting out a smaller property in order to help themselves move up the housing ladder. They may not be able to find the right property to buy or not in a position to sell the smaller property so rely on being able to let it out to pay the mortgage and afford a property in a different area or large enough for a growing family.
People are seeking out good quality rental property that will give them a nice place to live for longer periods. We need a healthy private rented sector in Bingham to service the demands of a modern population and encourage employers to stay in the area.
If you are considering investing in property it is important to do your research. Making sure the property you buy will appeal to the right type of tenant will minimise voids and reduce the running costs.