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Rental surge shows the need for Build To Let
The surge in private renting in recent years shows that purpose-built property to let is needed badly according to the British Property Federation.
The latest English Housing Survey, which we reported yesterday, reveals that young households aged 25 to 34 were more likely to be renting privately than buying.
The BPF believes that an institutionally funded build to let sector is the most effective way in which to significantly increase the volume and standard of private rented sector accommodation in the UK.
It has praised the government for its work in encouraging the build-to-rent sector over the past few years, but has warned that a future government will need to maintain this momentum if it is to significantly contribute to solving the housing crisis.
The 2013/4 English Housing Survey showed that in 2013-14, 19 per cent (4.4m) of households were renting privately, compared to 17 per cent (3.9m) households renting social housing and 63 per cent (14.3m) owner occupiers.
This private renting figure is up from 18 per cent in 2012-13 and 11 per cent in 2003.
The survey also showed that in 2013-14 almost half of all households aged 25 to 34 rented privately, up from 45 per cent in 2012-13. The proportion in this age group living in the private rented sector has more than doubled from 21 per cent in 2003-04. Over the same 10 years, owner occupation in this age group dropped from 59 to 36 per cent.
Melanie Leech, chief executive of the British Property Federation, said: “The UK is facing an acute housing crisis, and at the same time we are seeing a significant change in the way in which the population is living. The build-to-rent sector is an obvious solution to this.
“Not only does it offer steady and attractive yields for institutional investors, but it will also provide high-quality, much-needed accommodation for those who are unable to step on to the housing ladder. We hope to see the next government continue to support the sector and encourage its growth.”
