UK Private Rented Sector Boom Continues

Thursday, June 4, 2015
UK Private Rented Sector Now Worth £1 Trillion

UK Private Rented Sector Now Worth £1 Trillion

UK Private Rented Sector Now Worth £1 Trillion

The UK’s private rented sector (PRS) looks set for a profitable future as a new report reveals that the sector is expected to increase by 700,000 rental units to around 5.5 Million properties by 2020.

The PRS represents 18% of all current UK housing stock, following the addition of approximately 150,000 rental properties to the sector over the last 12 months.

The UK private rented sector has witnessed a high number of new property investors entering the market using buy-to-let mortgages to fund property purchases since March 2014, moving the sector from being a niche investment asset class to one big enough to rival the stock market.

Landlords are reaping the benefit of the paradigm shift towards renting properties, similar to our European counterparts, rather than purchasing homes for life, as previous generations had sought to do. If recent growth in the PRS continues, then the whole sector could be worth in excess of £1 Trillion (GBP) by the end of July 2015 and this trend could see the sector worth somewhere in the region of £1.5 Trillion (GBP) by 2020.

Legal 4 Landlords offer a wide range of specialist products and services for landlords, letting agents and tenantsWith this in mind there are a wide range of specialist products and services designed by landlords for landlords to aid the operation of their rental property businesses more efficiently, protect rental income and there are also insurance products especially to protect the interests of their tenants.

Legal 4 Landlords are the UK’s top specialists for letting agents, landlords and the PRS leading the way in the development of these specialist products and services, with a wide range on offer, including tenant referencing, rent protection insurance, tenant liability insurance and even tenant eviction, should the worst happen.

Sim Sekhon

Sim Sekhon

Spokesman for Legal 4 Landlords, Sim Sekhon said: “Legal 4 Landlords has grown substantially since we opened our doors in 2008 and it is landlords and letting agents that drive our success. We endeavour to develop the best products and services for the industry with our partner suppliers to help agents and landlords protect their property assets, rental income and businesses, whilst also providing market leading insurance policies for tenants. Our tenant liability insurance has observed a massive increase in interest over the last 12 months with landlords opting to help tenants protect their hard saved deposit funds from all kinds of damage caused to rented properties, even accidental damage, up to the value of £2,500 (GBP).”

With tenant demand continuing to strengthen, property prices continuing to creep upward and the recent relaxation of pension rules, the UK’s private rented sector is proving to be a very attractive investment opportunity for people comfortable with the risks, so it is wise to have as much security as possible to protect any potential income and the asset that is generating it.

To discover more about the specialist products and services available to landlords and letting agents – Click Here

This was written by Mike Clarke. Posted on at 1:21 pm. Filed under Insurance. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.