Changes in the Private Rented Sector

Changes in the Private Rented Sector

The make-up of the Private Rented Sector (PRS) has undergone a fundamental change within the last few years due to successive Government housing proposals.

Reports indicate that almost 50% of housing benefit recipients are now living in PRS.

The Private Rental Sector has outperformed both commercial property and equities with average returns of 10.5% over the last decade.

The six main UK cities with gross yields over 6% in order are:

• Leicester (6.4%)
• Sheffield (6.3 %)
• Coventry (6.3%)
• Stoke-on-Trent (6.1%)
• Reading (6%)
• Birmingham (6%)

Demand is high in the private rented sector in the current economic climate, due to first-time buyers priced out of the market, immigrants and increasing student numbers all looking for rented housing in the private sector.

With Coventry home to two major universities and a reenergised technical industry, the time to invest into property has never been better.