Rental income for landlords set to soar to £70bn

Tuesday 19th June 2012

Total rental income to UK landlords in the private sector is set to soar to £70bn in the next five years.

The prediction comes from Savills, which has been running its 24th annual ‘financing property’ presentations in the City.

Savills say that the shift to renting from home ownership creates a need for significant investment.

Lucian Cook, director of residential research at Savills, said: “Rental growth and more renting are forecast to push the amount of rent paid to private sector landlords from £48bn to £70bn over the next five years.



“We estimate that over the same period, £200bn needs to be invested in the private rented sector to keep pace with demand. We only expect £50bn of that to come from buy-to-let finance.

“Institutional investment backed by new sources of finance is critical to filling the gap.”



Savills says that larger investors buying in bulk should see good returns for their money.