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For a variety of reasons more people rent their homes than 10 years ago in the UK. Developers and homebuilders are developing properties accordingly.
When Communities Secretary Eric Pickles announced in June 2014 that the Government was designating 拢49 million to support rental home construction, it was acknowledging a long-term trend in the UK. That is, for various reasons, a larger chunk of the working population now rents rather than owns its home.
The Government fund supports schemes under the Build to Rent programme cheap nike air max shoes , itself a 拢3.5 billion scheme targeting the construction of 10,000 new homes for private rent. It specifically helps developers to build larger scale homes for the private rental sector. Of note, these are intended to be quality homes that will help goad private investment in this sector, such as through property fund partners. The program is already oversubscribed by developers and likely to reach its 10,000 home goal.
But who are the renters - and will there be enough demand in the future?
The traditional view of renters in the private market was that they were young working people, saving up a deposit such that they could purchase a home in the next few years. But the housing crunch and stringent lending practices since the financial crisis in 2008 have changed that considerably. Some statistics worth considering:
鈥?The size of the private rental market has risen by 89 per cent between 2003 and 2013.
鈥?In England and Wales cheap air max shoes , the rise was from 1.9 million households to 3.6 million.
鈥?"Rental hotspots" - areas where between 20 and 40 per cent of homes are rented - numbered only eight in 2001 but now 51 areas have that high a concentration of renters.
鈥?Traditionally, large cities with high housing costs such as London and university towns had the highest concentration of renters. But now higher concentrations are seen in Torquay, Torbay, Eastbourne, Hastings, Bournemouth cheap nike air max , Shepway and Newmarket - each with more than 20 per cent renters.
There are a number of ways