Landlords have been assured that there will be no waning in the demand for private rented properties over the coming years, according to recent research.
Real estate firm Hamptons International says demand will remain high, since it takes a tenant many years to save up a deposit to buy their own property.
For instance, the firm says that the average single Londoner will need to save for 46 years to put together a 15% deposit for buying their first home.
On average, it will take the typical single buyer in the UK more than 13 years to save up for their deposit without any financial assistance from their family. They would need to save 22% of their income after meeting their accommodation, food and utility bills.
The region where it is easiest to save for a deposit for single buyers is the North East, where the average person can save for a deposit in less than eight years.
Best option for young single buyers
The best option for young single buyers is to team up with a friend or partner, as this will reduce the time it takes to save significantly. For a couple who work full-time, it would typically take them just three-and-a-half years to save for a deposit - in London this would go up to eight years, but if they lived in North East it would take just two years.
Hamptons says that the Chancellor's announcement of the Lifetime ISA would help savers even more and would help reduce their saving time by three years by using the savings account. In London, a single buyer could reduce their savings time by 19 years.
The bottom line, says the firm, is that any households who want to buy a home will be forced to remain in the private rented sector for many more years to come. To underline this, their research also reveals that for single first-time buyers who can save, they have just 16 areas that will be affordable to them.
To underline the findings from Hamptons, a survey commissioned by housing charity Shelter and British Gas has found that 75% of young Brits believe they will never be able to afford their own home. As a result, they believe will be forced into renting a home for their lifetime.
In addition, a survey by Rightmove has also revealed that the average price for a UK house has now reached more than £300,000, which is a rise of 50% in 10 years while wages have risen by only 22% over that period.
Rent disparity in the UK revealed
Meanwhile, a survey of the average rent for properties around the UK has revealed startling differences in the prices being charged in the North and South.
Self-storage firm StoreFirst has revealed that tenants who pay £800 or less every month could afford a three-bedroom property in Manchester but in London their money would stretch to a single bedroom flat share.
The survey reveals that the average UK rent outside of London is £740 a month, while the average rent in London is now £1,500 a month.
