Rental market to gain yet more strength as European model sets in?

Rental market to gain yet more strength as European model sets in?

Landlords in the UK are a resilient bunch. In recent times, while the market for sales has continued to improve time and time again, landlords have staved off the fears that their own yields would be damaged by a drop in demand from potential tenants.

This proved not to be the case, of course, and according to new reports, the only way is up for those who are looking to let properties in the UK.

According to a study carried out for Halifax by the National Centre for Social Research, the attitude of young Brits is changing, and while in the past it was a sign of aspiration to own a home, 46 per cent now believe that the UK is becoming more like the continent, where most people rent for life.

The reasons for this are many. For 86 per cent of youngsters in the country, it is a case of quality of accommodation, as they said they would rather rent than compromise on where they live to be able to afford to save for a deposit. 

For others, the reasons are linked to the modern lifestyle. For example, many simply want the ease that comes with renting. If you don't have to deal with selling and buying homes, it can be easy to just move between jobs and cities as you progress your career.

"With attitudes softening towards the social implications of renting, and the number of people who say they will never own a property increasing, we may be heading towards the point where the aspiration to own a nice home will be replaced by the aspiration simply to live in one," said Craig McKinlay, mortgages director with Halifax.

What could this mean for the UK's bigger cities then? For one thing, it will leave a door open for landlords to increase portfolios, something that most have been doing ever since the start of last year.

It could also have wider implications though, such as an increase in the far newer institutional private rented sector, in which businesses will purchase full buildings for the purposes of renting them out. 

As demand for rental properties increases over the next few years, supply and demand will need to be levelled out, and it could well mean far more companies buying into the market with high returns in mind.