75% of lettings concentrated in a quarter of UK
Published by Max Salsbury for 24dash.com in Housing and also in Communities, Finance
To Let Signs
Analysis has shown that 75% of last year's lettings were concentrated in just a quarter of the UK.
Hometrack - which did the research - concludes that though build-to-rent is central to government housing policy, the sector does work in all of the UK.
The property analytics company divided the rental market across the country into mature, active and inactive markets.
Mature markets - with high concentrations of rental supply and strong turnover - were found to be clustered in just 7% of the country, accounting for 29% of the UK’s rental stock, and tended to be large urban areas where rental demand is at its greatest.
In contrast, inactive markets accounted for 71% and contained 38% of the UK’s private rental housing stock. Inactive markets are defined by areas where rental demand is at its lowest and landlords run the risk of long void periods.
Hometrack's research director, Richard Donnell, said: “These are important considerations for developers, local authorities and investors to be aware of when looking at local housing needs and when setting rental levels. Our analysis shows that there is little point in building homes to rent in locations where a viable rental market simply doesn’t exist.”
London was discovered to have the highest concentration of rental properties, and also has the largest pool of demand. The capital consequently commands some of the highest rents in the country, where the average rent for a two-bedroom home is three times higher than elsewhere.
Richard Donnell added: “The luxury of a spare room is a thing of the past for many London tenants.” To put this into context, a fifth of owner-occupied homes in London are fully occupied. Across the rest of the country occupancy levels for private rented homes are three times higher than for owner-occupied properties."