from the Office for National Statistics
The private rental sector in the UK has seen a steady growth over the past few years. According to figures from the Office for National Statistics (ONS), the number of households in the private rental sector has increased by 1.7 million since 2008. This is a significant increase, and it is important to understand the factors that have contributed to this growth.
The first factor that has contributed to the growth in the private rental sector is the increasing cost of housing. The average house price in the UK has risen by over 50% since 2008, making it increasingly difficult for people to purchase their own home. This has led to more people opting to rent instead, as it is often more affordable than buying.
The second factor is the increasing demand for rental properties. This is due to a number of factors, such as an ageing population, a growing population, and an increase in migration. All of these factors have contributed to an increased demand for rental properties, which has helped to drive up prices and increase the number of households in the private rental sector.
The third factor is the changing nature of employment. More people are now working on a freelance or contract basis, which means they are less likely to be able to commit to a long-term tenancy agreement. This has led to an increase in the number of people looking for short-term rental agreements, which has also contributed to the growth in the private rental sector.
Finally, there has been an increase in the number of landlords entering the market. This is due to the fact that it is often seen as a more attractive investment option than other types of property investment. This has led to an increase in the supply of rental properties, which has helped to meet the increasing demand from tenants.
Overall, it is clear that there are a number of factors that have contributed to the growth in the private rental sector over the past few years. The increasing cost of housing, increasing demand for rental properties, changing nature of employment, and increasing number of landlords entering the market have all played a role in this growth. It is important to understand these factors in order to ensure that the private rental sector continues to grow in a sustainable manner.