Rentals becoming even more popular

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06th September 2011

Rentals becoming even more popular

One in six homes is now a private rental property

Tuesday 23rd August 2011

One in every six homes in England is now a private rental property, new figures from Communities and Local Government have revealed.

The figures show that 17.4% of homes are now within the private rented sector, an increase from 16.4% in 2009 and up 229,000 by number.

Since 2000, the number of properties in the sector, which currently stands at 3.9 million, has risen by 1.8 million, reflecting the shift in housing tenures England is currently experiencing.

Conversely, the number of properties in the owner-occupied sector fell from 14.9 million in 2009 to 14.8 million last year – the lowest since 2000.

Nigel Terrington, of specialist buy-to-let lender Paragon, said: “More people than ever before are now relying on the private rented sector and we are certainly seeing a change in perception towards the sector.

“The increase in rental homes is fuelled by a combination of landlords buying property with cash and buy-to-let mortgages, people letting out homes they have inherited and home owners deciding to let their property.

“We are seeing a very different mix of tenants in the sector now. No longer is it dominated by students and young professionals, it is a much wider group including more families and mature tenants, and therefore we need to have a PRS adaptable to suit all.

“However, further growth is needed as tenant demand is clearly exceeding supply and to avoid a greater squeeze on the PRS, landlords need to be encouraged to invest in their portfolios going forward.”

The CLG’s figures (look for Table 104) can be viewed at
http://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/stockincludingvacants/livetables/