135 per cent increase in privately rented homes in past 30 years.

You know how I do like figures and stats about the property market! So I was very excited to see that Martin & Co has released a special edition Market Intelligence Report, celebrating 30 years in the private rental sector. I have picked out the bits relevant to us in Mid Sussex to share with you.

The report documents the evolution of the property market since Martin & Co’s beginnings in 1986, including regional data from around the UK.

The research reveals that the Southern Home Counties, which include all of us in our Mid Sussex towns and villages, found a 150% increase properties became privately rented in the last 30 years. House prices grew 787%, and rents in the Southern Home Counties were an average of £862pcm.

The average age of a tenant was 33.9 years, showcasing the normalisation of renting in mature, working adults.

In 1986, just 10% of UK houses were in the private rental sector. Today that number has almost doubled. 19% of property is now being rented from a private landlord, showcasing the incredible rise of buy-to-let since Thatcher’s government.

In 1981 just 20 local authorities had more than 15% of its properties in the private rental sector. In 2011, that number was 169 local authorities, predicted to grow again by the next census in 2021.

National findings from the whole of England and Wales showed that house prices grew a staggering 768%, compared with a 342% increase in FTSE shares – well over double the rate of increase.

In 1986, the average buyer spent £4,000 on their deposit. This has increased to £50,000 today, more than double the average salary of £25,600.

Borrowers now need to earn £60,000 to afford a mortgage, compared with £13,000 30 years ago. The average UK house price is £285,000. 

The property market today is strongly weighted towards renting, especially for younger people. A dramatic decrease in the number of houses being built (just 152,000 from a required 250,000) means that demand and prices far outstrip supply, forcing the majority of the UK workforce into renting. In fact, anyone earning lower than £50,000-£60,000 a year are essentially priced out of the buying market, so there is now a greater proportion of older people who own their houses outright or with a mortgage. This explains the extraordinary 346% increase of 35-44 year-olds in privately rented accommodation in 30 years. Read the full report by clicking this link. Read the full report here