40% of UK Housing Stock is Private Rental, Report Shows
By |Published On: 22nd January 2019|

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40% of UK Housing Stock is Private Rental, Report Shows

By |Published On: 22nd January 2019|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

In the last quarter (Q4) of 2018, 40% of the UK housing stock was private rental, increasing to 50% in cities such as Newcastle upon Tyne and Manchester, according to a new report from TwentyCi.

The marketing consultancy’s Property & Homemover Report for Q4 reveals a steady increase in the percentage of rental properties available over the previous 12 months.

However, the study confirmed an overall property market slowdown in 2018.

Despite a 4% rise in new instructions year-on-year in Q4, there was a 1.2% decline in exchanges, with 20% of property sales falling through, which might explain why rental stock has increased.

Overall, the data suggests that the north-south divide is very much still in existence, despite higher salaries in the south. For example, the 25% of highest earners in London will be spending between 40-60% of their take-home pay on their mortgage to buy a home of equal standing with a 40% deposit.

Meanwhile, the 25% of lowest earners in the capital would not be able to afford to buy a property of equal standing, as it would mean spending between 70-131% of their take-home earnings on their mortgages.

For the lowest earners, the cost of renting a property of equal standing would be between 57-90% of their take-home pay.

However, the figures show that there are many locations in the Midlands and north of England where the 25% of lowest earners can afford to rent or buy.

In Nottingham, for instance, to rent a home of equal standing would cost 35% of take-home pay, while buying with a mortgage would eat up 37% of take-home earnings.

Colin Bradshaw, the Chief Customer Officer at TwentyCi, says: “Q1 2019 and the outcome of the Brexit process will determine the outturn for the next 12 months.”

With such a high proportion of private rental properties in the UK housing stock, demand from tenants looks set to remain high.

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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