Martin & Co claims to have identified the 10 key factors that influence local rental markets in terms of tenant numbers - with a fast-growing tech sector being the single most significant.
The list will be familiar to agents and analysts, but they have been assessed by Martin & Co using the agency’s own analytical tool for measuring latent demand.
The 10 are:
1 - fast growing tech sector - employment and turnover growth in the UK tech sector significantly outperforms the rest of the economy;
2 - visitor destination - according to visitBritain, the number of visitor nights spent in the uk increased by three per cent in 2015 to 273 million, with short term holiday lets a popular choice for those seeking to explore the uk;
3 - centre of excellence - the areas that score highly here either benefit from a Russell Group university, a thriving start-up economy or have high concentrations of jobs in the creative sector;
4 - city living culture - levels of renting amongst the younger generation are at an all-time high, while apartments dominate cities;
5 - development activity - the areas experiencing the greatest increase in housing stock, or the locations of significant future planning schemes; both are indicators of a dynamic economy.
6 - infrastructure investment - some 44 enterprise zones and 30 housing zones have been selected by the government across the UK as focal points for tax breaks and development. New employment and housing will help fuel demand for rental property in these areas;
7 - policy support - significant public funding has been promised to drive investment and employment within growth areas such as the Northern Powerhouse, the Cambridge-Oxford corridor, West Midlands Growth area, and the London-Stansted-Oxford corridor;
8 - student population - there are over 170 higher education establishments across the UK, varying from under 1,000 students to over 30,000. Over half a million students entered higher education in 2015, the highest ever recorded;
9 - young professionals - with the age of a first time buyer now 33, up from 30 just 20 years ago, demand for rental properties is high;
10 - commuter catchment - major cities of the uk are the powerhouses of employment and economic growth. Most locations within these commuter zones tend to be investment hotspots.
The UK’s major cities score highest on the assessment tool – Manchester, Birmingham, Leeds, London and Cardiff in particular. Cambridge also scores highly.