Government has long recognised that the private rented sector (PRS) has a vital role to play in offering a flexible tenure providing homes for those for whom neither home ownership nor social renting are currently appropriate.
CML – Press Release – New update 15/05/2009
More recently housing commentators have begun to note some shift in the balance of housing tenure towards the PRS as some of the factors that have underpinned rising levels of home ownership appear to have become less significant. The most recent edition of the Survey of English Housing contained evidence of falling levels of home ownership.
Housing reform green paper
In 2008 the government announced that work had commenced on a housing reform green paper, which would contain reform proposals affecting both the PRS and the social rented sector. Working groups were set up on which the CML was represented.
As the banking crisis developed and the economic downturn increased in severity the CML argued that the present situation was so volatile and that long-term trends in relation to to housing tenure and the role of the PRS so difficult to determine with confidence that production of a green paper as a prelude to reforming legislation was premature and that further research and analysis would be needed.
In the event it appears that this warning has been listened to. The green paper has been postponed more than once and external working groups have been suspended. There is not advertised date for the appearance of the green paper and it is not expected before Autumn 2009.
