If you are planning on moving house but are struggling to sell your property, it might be a good idea to looking at renting out your home instead. Recent reports from Rightmove have suggested that by 2016 the demand for private rental properties could reach as many as one in five properties, resulting in the need for over one million rental homes.
This news comes at a time when the property market is fairly stagnant. Despite slightly more promising economical forecasts of late, people are still reluctant to buy, sensing that it could be more of a risk than they are willing to take.
Renting your property then, might be a good way around the unrelenting property crisis. The report shows that in 2011, tenants paid approximately £48 billion in rent to private landlords, a figure which is expected to rise to a whopping £70 billion by 2016.
Lucian Cook, director of Savills residential research has said; “Meeting the growing demand for private renting and the changing profile of tenant demand are perhaps the greatest challenges facing both the housing industry and policy makers. The dynamics of supply and demand make a great case for investment in this sector, and rising rents and lower capital values have begun to attract private investors back into the market. Investment returns relative to other asset classes will dictate the pace of investor entry to this sector.”
Clearly then, becoming involved in the private rental market not only represents a sensible alternative to selling your property, but could also be a savvy investment opportunity. Getting in early will ensure that you already have a foothold before the industry becomes saturated.
Before you do make the move to do this though you should check demand in your particular area. London and the South-East of England tend to yield higher rent and so represent a better financial prospect than properties in the North of England.