Renting Out Performs Farming
Many have found it hard to sell their home and have opted to put it out for rent. Others have sought out to invest in property and have seized a second or third property to open to renters. Business is good too as renters are outnumbering available rental properties. In fact, renting has moved ahead of farming in income per acre earnings.
Savills has released data showing that rental homes have overtaken farming as an income earner. Because demand is set to grow, mainly because of the increasing difficulty to purchase a home, rental properties are to out perform at 25 pounds an acre more by 2015. "The current economic climate may increase the demand for rented accommodation as potential homeowners remain constrained by a lack of equity," Savills said. "The increasing shortage of quality rental properties is good news for those estate owners with residential portfolios." Farming incomes have remained flat over the last year, averaging 64 pound per acre, "reflecting the current pressures faced by the agricultural industry with falling commodity prices and higher input prices."