As Lancaster strides into the future, the private rented sector has continued to house many of its residents.
The decade-spanning 2011 to 2021 saw a significant surge in the private rented sector, a testament to the enduring appeal and viability of the Lancaster property market. This growth has unfolded amidst a backdrop of housing challenges, underscoring the pivotal role of private landlords in bridging the housing gap.
In 2011, 21.4% of homes in Lancaster were in the private rented sector, by 2021 it had risen to 24.9%. That means 1 in 4 Lancaster homes are now in the private rented sector.
Over the last two decades, the UK has witnessed a notable shortfall in council house construction (an average of 1,630 for the whole UK per year (that’s not a typo!)), compared to 144,910 per year in the private sector.
That is particularly interesting when we look at the averages for the 1950s, 60s and 70s when, on average, 160,570 council houses were built per year compared to 147,960 private sector homes per year.
The shortfall in council housing has inadvertently propelled the private rented sector to the forefront, making it an indispensable player in Lancaster’s housing market.
This growth has been a beacon of hope for many; for Lancaster landlords, it’s a realm of investment with promising returns, while for Lancaster tenants, it avails the crucial roof over their heads in a market where buying a home remains a distant dream for many.
Landlords have found a fertile ground in Lancaster to nurture their investment portfolios. The city has demonstrated resilience. Although some landlords have chosen to exit the market recently, the demand for rental properties remained robust. The persistent demand underscores the inherent value proposition that Lancaster holds for both seasoned and aspiring landlords.
However, the blossoming of the Lancaster private rented sector has its shades of concern.
For tenants, the dream of homeownership is further away as Lancaster house prices have continued to soar over the last few years (although they have eased recently), making the rental market the only viable option for many.
It doesn’t help Lancaster tenants that rents in Lancaster have risen by 31% since 2016.
Although renting offers flexibility and fewer responsibilities compared to homeownership, the desire for a place to call one’s own is a sentiment that resonates deeply among many Lancaster tenants.
At JDG, we are conscientious letting agents who are attuned to the market dynamics and the needs of both landlords and tenants. Our expertise in the Lancaster property market has enabled us to cultivate a harmonious landlord-tenant ecosystem that is not only financially rewarding for landlords but also empathetic to the housing needs of tenants.
The comparative analysis, enriched by statistics, paints a favourable picture of Lancaster’s private rented sector growth, making it a compelling choice for existing and potential landlords.
The journey of a landlord is one laden with both promise and challenges. The landscape of buy-to-let investments is ever-evolving, and navigating it requires a blend of market insight, foresight, and a trusted partner who understands the local terrain.
As we look ahead, the horizons are promising for those keen on exploring the opportunities nestled within Lancaster’s private rented sector.
At JDG our doors are always open for insightful discussions about making informed investment decisions in a market ripe with potential.
The narrative of the past decade is a telling compass of the potential returns ahead. Being a landlord is a long-term commitment and should not be influenced by short-term market fluctuations. For many landlords, the initial investment is not only about quick returns but also about long-term benefits, such as property appreciation and consistent rental income. Even with rising mortgage rates, the increasing rental demand suggests rents could surge by around 20% to 25% in the coming four or five years, a potential benefit for landlords.
Moreover, long-term appreciation can offer significant returns when it comes to selling properties, especially considering the leveraged nature of property investments. Even in challenging times, holding onto properties aligns with the foundational reasons many entered the buy-to-let market. Lancaster landlords play a crucial societal role, filling the gap left by insufficient social/council housing.
In essence, while entering the Lancaster buy-to-let market might be daunting now, those already invested should think carefully before exiting.
In Lancaster, the private rented sector is more than just a market; it’s a community where every landlord’s investment catalyses the broader social good, and every tenant’s satisfaction is a badge of honour we wear with pride.
Your journey in the Lancaster rental market is not just a business venture; it’s a voyage of impact, and we are here to ensure it’s rewarding in more ways than one.
Do you have any questions? If so, please get in touch. At JDG we are always here to help.
Thanks for reading