Rental demand predicted to continue to rise

A recent report commissioned by the Resolution Foundation and Cambridge University highlights predictions of the housing market will evolve in the coming years. It states that if current economic trends continue, including low levels of house building, constrained mortgage finance and low income growth, families living in rented accommodation will continue to increase.

The report also projects that more families with children will be renting than ever before. The past five years have seen a massive 86 per cent increase in families with children renting their homes, growth which looks set to continue – particularly in London where renting will overtake mortgaged home-ownership among families by 2020.

It found that while Britain’s economy remains weak the proportion of households owning with a mortgage will decrease to 27 per cent by 2025, down from a peak of 43 per cent in the early 90s.

The fundamental laws of supply and demand will create a rise the ‘real’ cost of rent over and above inflation. It also means that more families will look to the private sector for rental properties.

Great news for property investors! If you are looking to expand a property portfolio, or wish for further information on Buy to Let mortgages, contact Howard Bowes at Harvey Bowes Ltd, today: 029 2115 6918

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP REPYAMENTS ON YOUR MORTGAGE

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About harveybowes
Mortgage Broker and founding Director of Harvey Bowes Limited. A mortgage broking practice with bases in Cardiff & Poole, UK. We take a fresh and positive approach to mortgage broking which pays dividends for both our clients and frankly, ourselves. The team at Harvey Bowes are expert advisors in all aspects of mortgages from residential to commercial and buy to let.

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