Demand for rental housing highest in Yorkshire as Sheffield property market remains red hot
Demand for private rented housing in Yorkshire is the highest in England and Wales according to a new survey.
Two thirds of private landlords in the region reported that demand for their properties by tenants increased in the second quarter of 2021. This compares with an average of 39 per cent of landlords across the country reporting an increase in demand.
The survey for the National Residential Landlords Association shows that although 13 per cent of landlords in Yorkshire plan to increase the number of properties they rent out over the next year, 20 per cent plan to cut the number of homes they have.
This supports figures from the Royal Institution of Chartered Surveyors which shows that the demand for private rented housing in the region is outstripping supply as the Sheffield property market continues to soar. City prices are now around 13% higher than when the pandemic began and some homes are selling for £30,000 above the asking price.
The strong demand for rental homes is one result of the COVID restrictions’ relaxation, a more buoyant economic outlook and a continued pattern of tenants leaving London as the trend towards home working continues. Just over half of landlords in central London reported a fall in tenant demand with only 15 per cent of landlords saying it had increased.
Nationally, the survey found that landlords reported that the demand for private rented housing has reached a five-year high.
According to the Office for National Statistics private rents across Yorkshire and The Humber increased by 1.7 per cent in the 12 months to July this year, which was below the inflation figure of 2.1 per cent.
Ruth Millington, Yorkshire and The Humber Regional Representative for the National Residential Landlords Association said: “Across Yorkshire and The Humber the supply of homes is not keeping up with fast rising demand. The only losers will be tenants as they struggle to find urgently needed rental homes. The government needs to change direction and, instead of introducing measures to deter investment in the private rented sector, it must put in place policies which encourage it.”
The figures come as new research reveals the average age of first-time buyers is increasing and predicted to reach 37 in London, and almost 35 for the rest of England by 2031.
In the next 10 years, the average home in the UK will jump by 30%, costing a staggering £323,718. For those buying now, they plan to borrow £8,635.14 from parents or grandparents
With house prices at an all-time high, showing no signs of waning, and the age of first-time buyers on the rise, the research by comparethemarket.com forecasts the change in the property market over the next decade.
Chris King, head of home insurance at comparethemarket.com, says: “Despite house prices seeing an all-time high and the average age of first-time buyers set to increase over the next ten years, it’s interesting to see that buying habits have remained similar.
"For those who are yet to buy but are planning on doing so in the future, it’s important that you take out the correct insurance policies, ensuring that both your home and contents are covered ready for when you move in, should the worst happen.”