Global real estate service provider, Savills, has forecast that the total rental income received by private sector landlords could rise to £70 billion in the next 5 years.
This shift away from home ownership towards renting creates a need for significant investment, say Savills.
Lucian Cook, director of residential research at Savills, said “Rental growth and more renting are forecast to push the amount of rent paid to private sector landlords from £48bn to £70bn over the next five years. We estimate that over the same period, £200bn needs to be invested in the private rented sector to keep pace with demand. We only expect £50bn of that to come from buy-to-let finance. Institutional investment backed by new sources of finance is critical to filling the gap.”
According to Savills, larger investors buying in bulk should see good returns for their money.