Spotlight: 

Rental Britain

Rental Britain
Rental Britain

2 February 2016, by Jacqui Daly

Demand for rental homes will continue to rise despite Government policies.

Summary

■ The rental market will still expand by more than one million households over the next five years despite measures to turn “generation rent into generation buy”.

■ The supply of rental homes is set to be constrained by the introduction of a Stamp Duty surcharge of 3% on buy-to-let properties and the restriction on tax relief on mortgage interest payments. Both measures are likely to limit the ability of private investors to expand their portfolios. This presents a major opportunity for large-scale investors to step into the gap created by a fall in off-plan sales to buy-to-let investors.

 

■ Mismatch between supply and demand will continue to underpin rental growth and attract increasing numbers of institutional investment at scale. We recorded investment deals worth a total of £2.6 billion in 2015 – a third of which was supported by institutional investment.

■ The lack of available stock is prompting an increase in deals to forward fund development for rent. We outline some of the routes to market that large-scale investors are using.

■ Investors are looking beyond London to cities with concentrations of households in the rental market. Our investment matrix highlights the cities with the best investment potential. Manchester, Reading, Edinburgh and Bristol top the chart.

Articles from Spotlight: Rental Britain – February 2016

Rental Britain Here To Stay

02 February 2016

The rental market will still expand by more than one million households over the next five years despite the Government’s drive to boost homeownership.

Routes To Market

02 February 2016

There is more than one way to invest in the residential market for large-scale investors.

Why Forward Fund?

02 February 2016

The lack of available stock is prompting an increase in deals to forward fund development for rent.

Opportunities For Investment

02 February 2016

Investors are looking beyond London to cities with concentrations of households in the rental market.

Outlook

02 February 2016

Our expectations for the rental market across the UK.

 
 

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Key contacts

Jacqui Daly

Jacqui Daly

Director
Residential Research

Savills Margaret Street

+44 (0) 20 7016 3779

 

Susan Emmett

Susan Emmett

Director
Residential Research

Savills Margaret Street

+44 (0) 203 107 5460

 

Neal Hudson

Neal Hudson

Associate Director
Residential Research

Savills Margaret Street

+44 (0) 20 7409 8865

 

Lawrence Bowles

Lawrence Bowles

Associate
Residential Research

Savills Margaret Street

+44 (0) 207 299 3024

 

Andrew Smith

Andrew Smith

Associate
Residential Research

Savills Margaret Street

+44 (0) 207 016 3834