2012 - A new start for Roomservice by CORT

As the new managing director of Roomservice by CORT I am taking over from Roger Hollis as the author of the Roomservice by CORT blog.

I come to the roles of both blogger and managing director following the recent news that one of the private rental sector’s notable players, Terrace Hill, has put all its residential assets up for sale. Terrace Hill’s decision is based on the strategic vision for its business, but nevertheless the move is bound to raise questions among commentators about the future of the institutional private rented sector. It is therefore worth taking stock at the beginning of 2012 about why there is still a strong argument for investing in the sector. 

The market fundamentals look good, and with the average age of first time buyers currently set at 37, more people than ever are going to be renting homes.

Many British people are now also moving towards a more European mindset. In Germany for example the high proportion of renters is a factor which keeps house prices there broadly stable, and our own government is starting to look at ways to encourage people to rent. People unable to buy have no choice but to rent long-term. The more people this affects and the longer it goes on, the more attitudes will change and long-term rental becomes a much more viable and desirable option.

Traditionally the UK man on the street might have thought it better to buy rather than rent a home, but that way of thinking is changing, especially for the younger generation. There is an increasing demand for renting from those who are under 25, and many of these young people want to rent the kind of well serviced and managed homes which institutional landlords offer. The trainee doctors, lawyers and bankers I know desire luxurious surroundings rather than dingy flats such as those associated with the classic Seventies show Rising Damp.

And who could blame them? Many are used to well-designed and well-serviced student accommodation. This in turn leads to a more demanding type of renter, who prefers their homes to be looked after by professional and more ‘corporate’ landlords. These landlords will be looking for an effective way to furnish their properties to keep current and future tenants happy by providing choice and consistent quality. In my opinion, furniture rental is the best way for them to do this.

So it seems that despite a bad start 2012 offers a wealth of opportunity for those working in the sector.