Are we seeing a switch to rental arrangements?
As the UK property market remains volatile with various forecasts suggesting an increase over the next four years and others suggesting a potential fall of 25%, it would appear that more and more people are now looking towards the rental market. Landlords in the UK are reporting that not only is demand remaining fairly steady but in fact 35% have seen an increase in demand over the last six months. Is this a change in the fundamentals of the UK market?
For many years the UK has predominantly been a purchasing property markets while others such as America have predominantly been rental markets. However, due to a number of factors including the need for mobility in the employment market, limited ability to climb on the property market and indeed the lack of mortgage funding at the moment, it seems that more and more people are now looking towards renting rather than buying a property.
This comes at a very opportune moment for UK landlords who have suffered during the last two years with many being forced to slim down their property portfolios and indeed a number have sold up and left the market. Whether this is a long-term change in the UK property market remains to be seen but it has been well timed for many landlords.
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