Prominent solicitor says rise in renting should be seen as an opportunity, not a threat
Rufus Ballaster, a partner who leads City of London-based Carter Lemon Camerons LLP’s Property Team, has commented on new research by property agents Countrywide, which has shown that for the first time in eight decade’s property rental is likely to outstrip home sales in 2017.
According to Countrywide’s study, September 2016 saw record activity in the rental market, with increasing numbers of lets agreed and tenants choosing to renew their contracts.
Based upon this and data for the months leading up to it, 2017 may be the first time since the 1930s that more homes are let than sold, the property agency suggests.
Welcoming the news and seeing it as another sign of flexibility in the housing market, Rufus Ballaster said:
“Germany has a far higher proportion of property renters than the UK and has no aspiration to raise the property ownership statistics in the county. Nevertheless it enjoys good quality affordable housing stock.
“Liquidity is a huge issue with property as an asset class and a market in which those with capital invest in a property which will attract rental demand and a workforce happy to go to where jobs are available partly out of confidence that they (with family where applicable) will find a happy home to rent near to that work is a good market, not a problem one, in which you are sad because you do not ‘own a home’.
“Of course some people will aspire to own their own homes and will have geographical stability and reliable income to make that aspiration a sensible one to achieve. The dream of ‘getting on the housing ladder’ as soon as possible after first gaining employment, however, was never a good thing for workforce flexibility.”
Rufus has also assessed how this statistic may affect investment in residential property within the UK as a whole.
Rufus said:
“Many people considering the inclusion of UK residential property in a balanced investment portfolio will be justifiably encouraged by the news that more rental deals than sales are likely to happen in 2017.
“Developers can take heart that demand may be available from individuals wishing to include or increase this asset class in their global (or national) investment strategy but also that pension funds or other collective investment vehicles may well have more appetite to buy good quality homes with a view to holding them long-term and enjoying rental income and capital appreciation.
“Again this is not a threat but an opportunity. Britain needs more housing stock and not all of it can be taken up by buyers who can afford to purchase the home and live in it.”
