There can be little doubt that the reality of the systemic undersupply of residential property in the UK has changed the landscape of Tenure for the foreseeable future. That this change seems set to continue is heartening for investment landlords, but the increasing political interest in the sector has brought uncertainties to play that will be likely to exacerbate regional and local differences. There is strong evidence that a detailed understanding of the local market will be of increasing importance to ensure sustainable investment strategy in the PRS.
Some of the drivers at play include data from the 2011 census where 46% of all households under 35 are in Private Rented Accommodation. In a recent report Savills Research has predicted that this figure will rise to 66% by 2019. Overall, they are predicting an increase of 1.2m extra households in the PRS or growth of 24% over the next five years.
Such change will only increase the likelihood of political intervention, and will create real opportunities for investment landlords. Coupled with the prediction that the South East (excluding London) is likely to benefit from a 26%growth in capital values, it certainly looks as if there are good reasons to invest in property in Oxford.
Oxford’s recent draft Housing Plan does little to address the supply and demand imbalance. Until neighbouring authorities are prepared to agree to green belt development and the significant infrastructure implications that would ensue, there seems to be little chance of any reversal of the movement of housing stock into the PRS.