According to the Residential Landlords Association, the end of this decade could see privately rented homes being a highly significant key to housing needs. The Association suggested that, by the end of the decade, one in five households could be renting their homes privately. They also said that by 2013 the private rented sector could overtake the social rented sector.
For the first time in 100 years, charitable housing group the Building and Social Housing Foundation has seen a decline in the owner-occupied sector while the private rental sector has significantly risen.
The Residential Landlord Association says that for a number of reasons, an increasing number of people are becoming private renters. It is important that there are enough private landlords in the sector to cater for this demand.
Residential Landlords Association chairman Alan Ward said: “The private rented sector is crucial to the UK housing mix.”
“According to an English Housing Survey private tenants are in general more satisfied with their homes than those in social housing and the private rented sector is essential to provide short term accommodation for young people who have to move to further their careers.
“At a time when government funding is strapped, it is private investment that will enable essential housing needs to be met for the 270,000 new households being formed every year between now and 2016.
“Rather than being seen as a last resort private tenancies are becoming the choice of many people who need the freedom to choose homes where they need and for as long as they need.”
He added: “And it is worth remembering, too, that private landlords also provide homes for those rejected by social housing for anti-social behaviour.”
It also seems there are pockets of hot areas for buy-to-let investors to grow their portfolios and meet the needs of this growing demand. Eastbourne for example, is one such area with specialist residential lettings agents, Leaders, reporting an increase the number of landlords interested in this area.
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