Who’s really renting property across the UK?
By Guest Blogger on 11 Jan 2018 in Letting
By Rose Jinks, Just Landlords
As a landlord, you may know what type of tenant you’re letting a property to, but do you know who the most common kind of renter is across the UK?
As the private rental sector expands, you may think that there are more tenants in every demographic. This may be true, but as a landlord, it’s essential you know what type of tenant is most common, so you can target them when marketing your property.
Homeownership vs. renting
One of the biggest shifts in the housing market over recent decades is the weakening level of homeownership, compared with a soaring level of private renting.
However, at the end of 2016, many UK households (65 per cent) were still owner-occupiers, while 17 per cent were renting from a private landlord and 18 per cent were renting from a social landlord.
Another important shift occurred from 1996 onwards, when social renting began to decline, and private renting increased.
This makes it clear that renting from a private landlord is now more widespread, catching up with levels of social renting. For this reason, landlords have a broader range of tenants to cater to.
Region by region
When considering where you should provide private rental housing, you should look at which regions host the highest number of tenants across the country.
For instance, owner-occupation is least common in London, which means there’s a high number of either private or social tenants who need good quality housing. As a landlord, you’re more likely to have a wide range of tenants to choose from and less likely to suffer lengthy void periods.
However, elsewhere in the south and over in Wales, levels of homeownership are higher. Although there will be pockets of high tenant demand in these locations, it may be a wiser investment option to consider other regions, such as Northern Ireland and Yorkshire and the Humber, which have a high proportion of tenants.
Households led by a younger person are less likely to be homeowners and more likely to rent privately, Government data concludes. This indicates that you may have more success as a landlord by targeting younger tenants.
For instance, a huge 65 per cent of 16-24-year-olds rent privately, while 42 per cent of 25-34-year-olds also rent from a private landlord. As the age categories increase, the level of private renting declines, until it hits just 4 per cent of the 75+ group.
To understand which age group you should target when purchasing or marketing a property, it’s wise to look at the proportion of renters within each category. But remember, you may be catering to an under-supplied market if you decide to target older tenants.
To fully understand how the private rental sector is performing across the UK, and to effectively manage your lettings business, it’s important to look at the broader picture rather than simply your own portfolio.
By knowing who’s renting around the country, you’ll know who you can rent your property to.
Image credit: https://speedpropertybuyers.co.uk