Generation Rent has revealed that 104 parliamentary constituencies could contain more renters than homebuyers by 2021, but where should property investors look?
In regions where demand for rental property is set to increase, buy to let landlords and investors could look to boost their portfolios to maximise possible returns.
Should the predictions from Generation Rent – based on current market trends – occur, then 16 per cent of MPs will represent tenant-dominated regions of the UK.
In London, around half of the population already rent properties and tenants are set to outnumber homeowners in 49 of 73 constituencies by 2021.
Hackney and Shoreditch had the highest proportion of renters at the time if the last census in 2011, with 76 per cent of property rented.
This is expected to grow to 79 per cent by 2021 while three-quarters of properties in Bethnal Green and Bow, Hackney North, Stoke Newington and Hammersmith are rented.
For buy to let investors and landlords, there regions have displayed growth in rent years and still offer the potential for more.
Southampton, Brighton, Slough and Reading are all set to be tenant dominated in the next seven years, meaning investors could look to snap up properties in these locations.
Milton Keynes North is expected to see an 18 per cent increase in the number of rented properties; growing from 28 per cent to 46 per cent by 2021.
Bradford, Hull, Sheffield, York and Leeds are all expected to contain renter-dominated constituencies in the next seven years while the latter is expected to have three.
Four seats in Greater Manchester are already dominated by rented property while it is a similar case for three Liverpool constituencies.
By 2021, 73 per cent of Central Manchester is expected to be rental property and this demand provides a number of opportunities for investors.
Taking advantage of the current economic situation could provide a significant boost for investors should they choose the right locations to purchase buy to let property in.
Are you new to buy to let? Take a look at our top 10 buy to let tips and we can help you get started.
28th November 2014