UK’s Private Rented Sector Set to Grow Further

The UK’s private rented sector (PRS) has more than doubled in size in the last 14 years, and it is set to keep expanding, according to the findings of Knight Frank’s Private Rented Sector Report. The report features the Knight Frank PRS investment index which shows that average rents paid rose by an average of 2.9% last year – ranging from 0.4% in London zone 1 to 5.27% in Manchester. Capital values for residential blocks rose by an average of 6.4% last year, taking the average gross yield to 6.6% in Q4 2013. Initial yields have not only been squeezed by rising capital values, but also the erosion of the discount on offer for the purchase of residential blocks. Download the report from the Knight Frank website.