SpareRoom: Private rented sector set for expansion

16 January 2012

Written by Jenny Barrett

There is likely to be a rise in demand for privately-rented accommodation in the immediate future.

This is according to SpareRoom director Matt Hutchinson, who claimed the "natural cycle" in this market is "currently falling apart".

People who entered tenancies a few years ago might previously have expected to be purchasing a house outright at this time but are not doing so, the expert explained.

He argued this is because of difficulties accessing finance or enough money for a deposit.

Individuals are "stuck in rentals, which means that the inventory is tied up and not coming back onto the market", Mr Hutchinson added.

He claimed there is now a "massive demand for renting" and the average rental price is being pushed upwards.

This corresponds with statements recently made by Upad chief executive officer James Davis, who argued there will be plenty of opportunities for investors in the buy to let sector during 2012, with rents outside of London growing by an average of between two and five per cent.