Nottingham Letting Agent Property Blog
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Popularity of the Private Rental Sector Looks Set to Increase
At the moment is estimated that around one in six households in Britain rent their home privately, and there's no doubt that the private rented sector is increasing at the moment. The latest research from Savills predicts that by 2020, the private rental sector could account for 20% of the housing market, and letting agents in Nottingham could see even greater demand for good quality rental property. The percentage of owner occupiers is expected to fall from its current level of around 70% to just 60% as attitudes towards renting continue to change. Although the private rental sector is expected to increase, social housing is expected to remain more or less same.
The increase in the private rented sector is being predicted as more owner occupiers are being forced back into the rental market as they have insufficient equity to move. More and more people are falling into negative equity, especially those who bought between 2000 and 2007, as outside London house prices continue to fall.
The latest house price figures from the Land Registry show average prices in England and Wales have dropped by 2.6% in the last year, but this figure is skewed by the fact that London prices have risen by an average of 2.1%, and some towns are bucking the trend. However the Council of Mortgage Lenders estimates around 7% of all mortgages are in negative equity, and some feel this estimate is somewhat conservative and the true figure may be considerably worse. While some people are able to stay in their present homes for years, others need to move whether for work or for personal reasons and the private rental sector is often the best choice.