Rising demand and decreased supply for suitable and affordable homes
More than 8 Million people (1 in every 7 individuals) in England lack access to secure, suitable, and affordable homes. (National Housing Federation)
Demand for rental homes at the beginning of 2022 is 76% higher compared to 2018-2021, whereas there are 39% fewer rental homes on the market in January.
According to an estimate given by the National Housing Federation and Crisis from Heriot-Watt University, around 340’000 new homes need to be supplied in England every year, and 145’000 of them should be affordable.
According to an independent research done by Opinion (Marketing Agency) in October 2021, 52% of adults in the UK believe that UK;s housing crisis is one the most serious issues the country faces.
Rising rental costs and lack of affordability for suitable accommodations in London
The average rent per month in London has reached £1650, which adds up to a 10.3% annual increase.
The average rental costs in London are out of budget for 86.5% people, and 43.3% of rentals are out of budget even for the average renter.
Nine out of ten Londoners can no longer afford rent & demand for affordable & suitable accommodations has increased massively.
London’s rental market is set to become more competitive this year after December 2021 finished with a 25% increase in tenant enquiries compared to December last year.
Whilst tenant demand continued to grow, the number of properties available to rent decreased by an overwhelming 69% during the same time frame.
Rising demand for student accommodations across the UK
The rent paid by university students for residences has risen by an estimated 60% over the past decade. The average rent is over £7,000, which surpasses the average maintenance loan given. In fact, the prices are 16% higher now compared to before the pandemic.
The rise in cost of student accommodations is directly linked to the increasing number of students in the UK, and stagnant supply of affordable accommodations.
There has been a massive rise in international students travelling to the UK to pursue their education. However, the rise in demand hasn’t been met with a rise in supply of suitable accommodations. he HESA has revealed that there is a 22% hike in the International Student Visa for the UK. Out of the 22% international students, 16% have a non-EU background. The rising figure display the rising demand for British education in the international diaspora.
Demand for buy to let investments
The rent paid by university students for residences has risen by an estimated 60% over the past decade. The average rent is over £7,000, which surpasses the average maintenance loan given. In fact, the prices are 16% higher now compared to before the pandemic.
The rise in cost of student accommodations is directly linked to the increasing number of students in the UK, and stagnant supply of affordable accommodations.
There has been a massive rise in international students travelling to the UK to pursue their education. However, the rise in demand hasn’t been met with a rise in supply of suitable accommodations. he HESA has revealed that there is a 22% hike in the International Student Visa for the UK. Out of the 22% international students, 16% have a non-EU background. The rising figure display the rising demand for British education in the international diaspora.
