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.
DISCLAIMER:The views contained in these user comments are not endorsed by Letting Agent Today(nor its associates and advertisers) in any way and are provided by users who wish to publish their independent opinions on our news.Whilst every effort is made to moderate these comments,due to the instant nature of the posting not all offensive material can be removed instantly.Please help us keep the comments areas tidy by reporting details of any infringements to email@example.com
Editorial Contact Details - Rosalind Renshaw