At Belvoir, we're experiencing an almost unprecedented demand for rental properties located in Sh...
At Belvoir, we’re experiencing an almost unprecedented demand for rental properties located in Shrewsbury and Shropshire - and it’s mirrored across the UK with demand growing for rental homes in all regions.
Looking at statistics from the ONS (Office for National Statistics) relating to families and household numbers in the UK, it showed some remarkable results:
The total number of families in the UK is approximately 19 million, with 12.5 million being married couples.
Comparing data from 1996 to 2015 - numbers of married couples with children has decreased by 10% since 1996 but, the numbers of married couples without children has increased by 4.6% over the same time period.
It’s interesting to note that the numbers of co-habiting couples with children is currently just over 3 million; this number has increased by 130% since 1996. The number of co-habiting couples without children has increased by 105%.
The number of lone parent families is currently approximately (+/-) three million, an increase of 23% since 1996.
This shows that the growth in the numbers of families is mainly those who are ‘co-habiting couples’ and, it’s suggested that these are the most likely to be renting, usually due to setting up home together early on in a relationship and not normally being in a position to secure a mortgage. The number of ‘lone parent’ families has also seen an increase and these too are more likely to rent rather than buy, as rental properties can provide accessible housing for those going through a change in circumstances and so, there needs to be good quality rental property available.
NEW HOUSING STOCK REQUIRED URGENTLY
At the present time we’re seeing only low levels of house building across England; in the year to June 2016 there were fewer than 140,000 new-build homes completed. The ONS asserts that if the number of households in England grows to 24.3 million in 2021 as projected, this would be the equivalent to an additional 221,000 households per year. The government perhaps should reflect on this and the need to oversee some urgent new housing stock, or the current crisis in the housing market will continue to worsen.
If this is allowed to happen, many families will face a dreadful struggle; the only way to relieve the pressure on the existing rental market stock is to build more houses. Until this happens, rents will carry on increasing and there will be considerable competition for each new listing.
IMPARTIAL ADVICE FROM BELVOIR SHREWSBURY
If you’re considering investing in rental property in Shrewsbury/Shropshire and the surrounding areas please contact me for impartial advice on potential rental returns. 01743 242000 e-mail: Paul Wallace-Tarry