New Homes get built with Renters in Mind
- Building Innovation
- 4 years ago
The UK real estate market has undergone some drastic changes in recent years. Home ownership has reached record lows, whilst almost 5 million people are now renting privately. Indeed, the economic crisis reeked significant havoc across the board; for homeowners, investors and builders alike, the market shifted and adaptions in strategy had to be made.
Additionally, cultural and lifestyle trends have also greatly impacted the market. Not only have younger generations been theoretically priced out of the market, there is an argument that they might not necessarily have been there anyway, not as they once were anyway.
The Effects of Change
Lifestyles and careers have changed significantly in recent years, and as a consequence it is increasingly common to postpone starting a family until one is in their thirties. Career, mobility and travel are often seen as more important in one’s twenties. This means there is a generation of single, young professionals seeking shorter-term housing to meet their needs and where typically in the past they would have bought their first property aged 27, now the average age is 36.
Research shows that there has been a perceptual shift in the way young professionals view and utilise renting; it no longer carries the vagrant and temporary stigma it once did. Instead, it provides flexibility, and fits in nicely with careers and lifestyles that are no longer as permanent and as structured as they were for previous generations. Renting is seen as reasonably affordable, and an attractive alternative, to becoming tied down with an unmanageable mortgage.
Developers have noticed the changing marketplace and are responding by constructing purpose built rental accommodations that are aimed precisely at this consumer trend. Entire villages of specifically designed rental units are being constructed across the country to feed the demand. It is predicted that thistrend will only get stronger, and this represents enormous opportunity for those looking to invest.
Local estate agents in Harrogate and other sought-after areas have a selection of purpose built rental units that would be perfect for investment and for anyone looking to begin or expand their investment portfolio, local agents are a great place to start your research.There are numerous benefits to investing in such purpose built rental units.
Advantages of Investing in Purpose-built Rental Units
For investors looking to compile a portfolio, the economy of scale achievable with these properties is surely the most attractive incentive. It may be possible to buy units in bulk and make significant savings. There is potentially the option to buy properties off plan and customise them en-masse, in accordance with your own budget and taste.
There is also the factor of newness; that the properties should rent easily, come with a builders guarantee, be fitted with the latest systems, and cost less to maintain in the long-term. Typically these properties are also easier to get credit for, bringing with them none of the typical problems often found in older housing.
Experts predict that this boom in rental is set to continue. Considering the above information and mentioned benefits, there has never been a better time to put together a rental portfolio that features purpose-built properties.