Institutional investment in the UK’s private rented sector (PRS) will grow to £70bn by the end of 2021, according to new forecasts.
Property body Knight Frank’s latest Multihousing Report was published late last week, and has been described as one of the largest property sector surveys of its kind.
The report comprises of a detailed Investor Survey, coupled with a far-reaching Tenant Survey, reflecting the views of 26 major investors and operators and more than 10,000 tenants currently living in the private rented sector.
It suggests that the proportion of households living in the sector will hit 5.79 million by the end of 2021 – representative of a 24 per cent rise over current figures.
68 per cent of renters told Knight Frank that they expected to still be living in the private rented sector in three years’ time, while two thirds of investors told the survey that they would be eyeing up long-term property investment in coming years, particularly in the build-to-rent sector.
In terms of location, 65 per cent of investors told the property body that London was their preferred investment destination of choice.
The research also found that 15 per cent of all residential units currently under construction in and around the City are made up of future build-to-rent properties.
Commenting on the research, James Mannix, Head of Residential Capital Markets at Knight Frank, said: “The strength of the UK PRS sector has grown demonstrably in recent years.
“As consumer demand for affordable, flexible accommodation continues to rise, PRS is firmly establishing itself as a key opportunity for institutional grade investment, due to its long-term potential.”
Carter Lemon Camerons LLP (CLC) solicitors is a City law firm which provides legal services with a personal touch. Unlike many City practices we are happy to act in smaller private legal matters, bringing the same care and consideration as we do to large commercial matters. For more information about our residential property services, please contact Prodromos Shakallis or telephone: 020 7406 1000.
