Investors are poised to splash another £36 billion on building rental homes by 2025 to capitalise on growing demand from Brits who can’t get on the housing ladder, according to a new study on Tuesday.
Estate agent Knight Frank predicted the money will be used on professionally run rental properties, many of which include on-site gyms and communal lounges.
The firm said an extra 560,000 households are expected to be living in the private rented sector by 2023, and there are 110,092 rental homes under construction or being planned in the UK.
Some £39 billion has been spent, with another £36 billion to come.
More than half of the current investment in the sector is in London, where would-be buyers have suffered from high prices and Brexit jitters, making renting look more attractive.
Nick Pleydell-Bouverie, head of residential investment agency at Knight Frank, said buy-to-let tax changes have deterred some smaller property owners from the market.
But he added: “Large-scale professional private-rented sector landlords are well placed to absorb this, as well as satisfying some of the structural shortfall in our housing supply.”
