The UK’s private rental sector will continue to grow because there is a shortage of affordable property leaving many people with little option but to live in rental accommodation, according to a report.
The findings come from research carried out by insurance specialists Cover4LetProperty which found that 28% of adults in the UK are living in social or privately rented homes.
They also found that with fewer people able to gain access to social housing, more than half of those aged over 40 will be living in a property owned by a private landlord. In addition, 57% of people aged over 60 will also be living in a private rented property.
Those who earn between £10,000 and £20,000 will be the most prolific renters with two in three people in this income band having to rent.
A report from housing charity Shelter also highlights that younger people have now given up hope of owning their own home because of unaffordable property prices.
The insurance firm’s report also points to a study carried out by accountancy firm PwC which stated that the number of first time buyers will continue falling over the coming 10 years because they are struggling to raise enough money for a deposit on a property.
The accountant’s study also revealed that more than 7 million households by 2025 will be living in rented homes, compared with 5.4 million doing so today.
A spokesman for PwC said: “There needs to be a sustained and large increase in the supply of affordable housing to meet the needs of a growing UK population which is expanding relatively quickly by European standards.”
Tenant’s social media profiles analysed
Meanwhile, new technology could boost landlords and letting agents vetting their potential tenants by analysing their social media behaviour.
The software comes from Tenant Assured which will automatically check social media accounts for potential tenants to decide what their personality traits are and enable landlords to check what their potential behaviour during a tenancy right be.
However, the potential tenant must give consent before the technology can be used.
If they do give consent, the software will check for several personality traits including their agreeableness and openness.
The technology will also provide information that might be of interest to landlords and agents during the tenancy.
The managing director of the firm behind the software, Ben Stubbs, said: “We help by determining potential problem tenants and also help good ones to secure property.”
