One in six lives in rented accommodation
A sixth of the UK’s population lives in accommodation rented from private landlords, according to a report published by property group Knight Frank.
The report analysed rental and capital growth in six UK cities and examined wider trends in the private rented sector.
Key findings reveal:
- The number of rented households is expected to rise from 3.9 million in 2010 to 5.3 million in 2018
- Demand for rented accommodation will continue to grow, particularly in urban areas
- The average yield across all six cities was 6.6 per cent in 2013
- Leeds and Manchester saw the highest yields in Q4 2013, at 8.2 per cent each.
Gráinne Gilmore, head of UK Residential Research and the report’s author, commented:
“The rental revolution is here. The dynamics in the housing market in the UK mean that the private rented sector is set to continue growing in the years to come, boosted not only by the difficulties many face in climbing onto the housing ladder, but also the need for flexible tenure among workers who are increasingly concentrated in the key cities around the UK.
“Investors keen to tap into the market are starting to move their attention beyond London to the regions, where, as our index shows, yields are higher.”