The Private Rented Sector (PRS) usually sees a slowdown in the summer months, but 2019 seems to be an exception. Recent reports now suggesting that the PRS is making a substantial contribution to the UK economy and letting activity continues to go from strength to strength throughout the summer months.
According to research produced by the PropTech company Bunk, the UK private rented sector is now home to over 5.2 million people in the UK. This number is only set to grow further, with the prospect of owning a home becoming increasingly out of reach for many.
The research produced by Bunk also revealed that the PRS contributes an estimated £5.9bn to the UK economy annually, a figure that was worked out by multiplying the number of private renters in each county by the average annual rent cost. Interestingly, the research also revealed that the PRS contributes more value to the UK economy than a number of large companies in the FTSE 100 and has a higher worth than the GDP of a number of countries including Croatia, Panama, Costa Rica and even the affluent Luxembourg.
This just goes to show how much the UK depends on the PRS to house people, and it also highlights the need for rental accommodation. As well as the research gathered by Bunk, the latest lettings Report by Agency Express, a lettings board company, has revealed that activity in the lettings sector has picked up in July. According to the report, the number of properties being advertised as ‘to let’ saw an 8.5% increase and the number of properties let out to tents increased by 6% year-on-year.
Of the 12 regions studied, eight reported an increase in properties being advertised on the rental market and 10 saw an increase in the number of properties being let out. The region that saw the most activity in the lettings market was the East Midlands with 46.7% increase in properties listed and a 23.3% increase of properties being let. This was closely followed by East Anglia where there was an increase of 27.4% for new listings and a 29.6% increase of properties being let out.
The activity in the PRS during the summer months should be very encouraging for buy to let investors as it demonstrates the UK’s need for high quality rental accommodation.
Are you looking for your next buy-to-let investment opportunity? Get in touch today!