Recent data from Nationwide Building Society highlights the increasingly significant story of sustained demand and evolving opportunity within the rental sector. For landlords, particularly those considering family homes as an investment, there is clear opportunity.
Demand is Changing
Recent Nationwide-backed research reveals a telling shift in renter behaviour. Millions of people are now remaining in shared accommodation far longer than expected, often well into their 30s.
• 69% say living alone is unaffordable • Shared living is now extending to an average age of 35 • Many renters feel they have “outgrown” their current living arrangements
The trend points to a growing number of tenants who are actively seeking their next step, searching for more space and more privacy. Rental demand is maturing, with the affordability gap sustaining the rental market.
At the same time, Nationwide’s latest financial results underline the broader economic backdrop. The housing market has remained stable, with house prices rising by around 2.2% year-on-year, indicating that investing in property is a profitable decision.
Many would-be buyers are still adjusting to higher borrowing costs, even as interest rates begin to ease. The result is a continued reliance on the private rented sector; not just as a short-term solution, but as a medium- to long-term housing choice. In fact, renting is no longer a transient phase for many households, but rather the default.
“With demand outstripping supply, tenants’ ages on the rise and property prices rising year-on-year, there is huge opportunity for landlords expanding their portfolios right now.” Tracy Cook, Lettings Director (MARLA)
Supply Imbalance is Reinforcing Opportunity
With rents expected to rise annually, landlords actively expanding their portfolios have a significant opportunity to take advantage of in this market environment. Whilst rental demand is strengthening, Nationwide’s recent industry data shows that the supply of properties are low in comparison. This imbalance creates a clear window of opportunity for those willing to invest or reposition.
What Rental Demand Looks Like
At Mackenzie Smith, we’re seeing an increased demand for family homes, reflecting the the evolving tenant profile. As renters move beyond house shares and smaller flats, there is increasing demand for:
• More space for growing families and hybrid working. • Stable tenancies • Access to outdoor space • Good school catchments
– All of which our local areas in North Hampshire, Surrey and Berkshire provide.
One of the more revealing insights from Nationwide’s research is the emotional aspect of renting. Many tenants report feeling they have “outgrown” shared living, with some even expressing embarrassment about their situation. For landlords, this reinforces the key point that demand is underpinned by necessity.
In a market often characterised by uncertainty, the rental sector stands out for its consistency. And within it, family homes are emerging as one of the most resilient and undersupplied segments.
If you’d like to discuss your next move with your rental portfolio, feel free to contact us at your nearest office, at Farnborough: 01252 551045 or Fleet on: 01252 514000. Enquiries and queries can also be made via email on: lettings@mackenziesmith.co.uk and compliance@mackenziesmith.co.uk.
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