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In order to meet current housing demand, the construction industry must hire 400,000 workers a year, a recent report revealed. That equates to one worker being recruited every 77 seconds.

At present, construction levels are not in-keeping with the government’s target of creating 200,000 new houses a year. Industry experts claim that this is due to lack of skilled workers, and that the situation is only likely to get worse.

Why the Shortage?

Ultimately, the UK’s construction industry cannot keep pace with rising demand, and employment in the sector has slumped by 15% since 2008. As if this wasn’t enough of a problem, experts also anticipate that a ‘hard’ Brexit may cause further problems, as currently, one in eight workers are from abroad. In London, this figure is even higher, at 23%.

The Effect

Lack of available, affordable housing is likely to impact the rental market. Recent figures show that more families than ever are renting privately – from 30% in 2004, to 37% in 2014-15. That’s a rise of approximately 912,000 households across the UK.

Additionally, first-time buyers are delaying their purchase until they’re much older. In 2004-05, the average age for a person to buy their first home was 31. In 2014-15, it was 33. At present, close to half of all people aged 25 to 34 live in rented accommodation, and only 57% of private renters expect to be able to afford a property in the future.

Property Investment Opportunities

This is bleak news for home-buyers, but an opportunity for people investing in property in the UK. Higher numbers of renters mean more demand, which in turn, ensures a steady rental yield and a promising income. This is particularly the case in London, where the number of people renting accommodation is predicted to rise to 60% by 2025. If you’re looking for investment properties in London, now is definitely the time to act.

Additionally, pressure on the property market is pushing prices steadily upward, which means good ROI in terms of capital growth.

Developing a Property Portfolio

If you’re searching for buy-to-let property for sale, it’s important to identify the following:

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