The UK’s most common household type for renting in the private sector has been revealed to be families for the first time.
The findings come from the National Landlords’ Association which shows that increasing numbers of landlords are now letting homes to families with children. They now make up 48% of the sector.
Families are followed closely behind by young couples who account for 47% of the private rented sector.
The research reveals a shift over the last four years when young singles made up 53% of the private rental market, followed by young couples and then families with children.
Nearly 5 million households in the private rented sector
The NLA also reveals that there are nearly 5 million households in the private rented sector and, according to the English Housing Survey, the proportion in the sector that are families has risen to 37% last year, from 30% in 2005.
The NLA’s chief executive, Richard Lambert, said the research revealed the contrast between the belief that renting is only a stopgap and something ‘to be tolerated’ until the renter bought their home and the modern trend of renting because people cannot afford to buy.
He added: “There is, however, a rogue element in private housing ruining the experience for too many people but most of the country’s 11 million private renters have a flexible and inclusive option that works for them and their current circumstances.
“There’s growing evidence that renting is not an obstacle for calling somewhere home and putting down roots. Most landlords want stable, good long-term tenancies and our findings show that more are receptive to helping families make their home in the country’s private rented sector.”
Landlords in Scotland lose £3,800 every year
Meanwhile, according to the latest buy to let index for Scotland, landlords there are seeing their returns decline to a point where they’re losing £3,800 every year.
According to Your Move, the index reveals that higher taxes on buy to let properties and falling house prices have led to returns falling for Scottish landlords.
In the year to May, annual returns in Scotland fell by 2.2% which means, in absolute terms, the average landlord has seen a loss on paper of £3,782 over the past year.
Tax surcharge being placed on buy to let properties
Brian Moran, Your Move Scotland’s lettings director, pointed to new legislation in Scotland which saw a tax surcharge being placed on buy to let properties which is forcing rents up.
He said: “The tax hike is leading to a shortage of homes to rent when compared with the housing demand as it has dissuaded landlords from investing.
“The limited supply of rented properties means potential tenants are now competing to secure homes and pushing up rents.”
