The latest research from Knight Frank has forecast that £75bn of investment will be committed to the professionally-managed Private Rented Sector (PRS) by 2025. The Multi-housing report reveals the key trends that are set to dominate the PRS along with insights from tenants and investors.
Over 10,000 people across the UK responded to the Tenant Survey, conducted for Knight Frank by YouGov. The report reflects the views of 5,000 people living in the PRS across the UK. For the first time, the survey also includes 5,000 homeowners, allowing the study to draw conclusions on the differences between homeowners and renters. Some of the key findings include:
- Young professionals (aged 25-34) no longer make up the largest group living in the PRS, having been overtaken by 35 to 49 year olds. This age group is also expected to show the biggest growth in households in the PRS over the coming years, with difficulty in obtaining a mortgage deposit to buy a home remaining a hurdle
- Affordability remains the key priority for 61% of tenants when choosing a property. More than 10% of tenants said renting allowed them to live in an area they could not otherwise afford.
- Location is the second biggest priority for tenants (23%) followed by the size of the property (10%).
- On average, 69% of tenants still expect to be renting in three years’ time, rising to 93% for Baby Boomers (aged 65+).