Will the future of UK property be built on the European rental model?

 
Will the future of UK property be built on the European rental model?

More people in the UK are now putting their money into the property sector, largely due to the fact it offers far better levels of return on investment than other asset types such as stocks and shares, cash and gold. 

However, it's not as straightforward as simply buying a house and waiting for the value to appreciate - you need to know the best sort of investment to make if you are going to see large returns. 

And according to a number of new reports, the best way to put your money to good use for the future could be to look towards the buy-to-let market. Prosperous already, the sector is only likely to improve even more further down the line.

It will all come down to a changing attitude among the younger generations, which could herald in the same sort of property model seen across mainland Europe.

While it has always been seen as something of a major life goal to buy a home in the UK, in countries like France, Italy and Spain, very few people actually own their house, with most renting for life. 

And with the government and the Bank of England likely to make changes that should slow down the number of people able to get onto the property ladder through the Help to Buy scheme in the next few months, it could be the case that this starts to become a reality in the UK.

A recent report from the Intermediary Mortgage Lenders Association certainly seems to think so, anyway, with its research suggesting that by the year 2032 more than half of all homes across the country will be rented rather than owner-occupied. 

It said that since 2007, the number of homes that are rented has increased from 14 per cent to 18 per cent, while the volume owned has fallen in the same period from 68 per cent to 64 per cent. 

In addition, the report showed that between 1991 and 2012/13, home ownership among 16 to 24 year olds in England dropped from 36 per cent to 11 per cent. 

It shows something of a shift in attitude from younger people, which is only likely to continue in the future, seeing landlords welcoming an increase in demand and a far better chance of making big returns from their property investments.