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Although there has been widespread reporting of a number of setbacks for landlords in recent times – including a stamp duty surcharge and incoming tax relief cuts – we believe that due to the overall strength of the rental sector, landlords shouldn't be put off from investing.

In fact, now remains a useful time to be a landlord, as the demand for rental property has never been higher, and looks to increase even further during the next decade, according to several new reports.

According to PwC, 64% of Brits born in 1960 and 1970 owned a home by the time they were 35. In a stark comparison, just 26% of those currently aged from 20-39 are set to own their home by 2025 – while the rest are expected to remain living in the Private Rented Sector (PRS).

This is music to the ears of landlords, as fewer people owning homes equals a higher demand for rental properties.

Tenants are also renting for a lot longer, the survey revealed, as rising house prices and unattainable deposits and mortgages make it more difficult to get on the housing ladder.

For landlords, though, this means demand will remain high which will contribute towards keeping void periods to the absolute minimum.

Of course, rental demand and rental prices vary across the UK, with certain locations providing better investment opportunities than others.

When it comes to demand, London is still be the best place to invest in – although yields in the capital are traditionally not as favourable as house prices continue to rise.

Between 2000 and 2025, it has been forecast that there will be a 24% rise in the number of people renting in the capital, compared against a 14.5% increase across the UK as a whole.

Locations such as Hyde Park Corner, Knightsbridge, Green Park and Bond Street command the highest rental prices in the capital, according to a report by Thrillest.

Renting in London in particular is becoming much more like the norm, as many tenants enjoy the flexibility that renting provides.

The rental outlook is also shifting in Scotland. Back in 2000, just one in three were renting from the social sector or from private landlords, but by 2025 it has been forecast that 44% will be a part of the PRS.

London and Scotland scored higher than Wales, the Midlands and the South in terms of predicted rental demand. The slowest growth was recorded in the south west; so landlords take note.

If you would like to find out more about becoming a buy-to-let investor, or want tips on how to successfully grow your rental portfolio, then please don’t hesitate to get in touch with the property experts here at online letting agent House Tree.

At House Tree we also offer our landlord clients the chance to discover how much rent a particular property could generate, so find out for free with our online property valuation tool.

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