The Residential Landlords Association has challenged government figures that suggest the private rented sector accounts for nearly all household growth over the past decade.
According to the “English Housing Survey: Headline Report 2008-09” (*), just published by Communities and Local Government, the number of rental properties have risen by one million since 2001 to 3.1 million.
“It is hardly credible that there has been the claimed 50 per cent growth in rental properties,” says RLA chairman, Alan Ward.
The report shows that the private rented sector:
• has grown from 13.9% of households in 2007/08 to 14.2% in 2008/09
• has almost as many families with children as the social rented sector
• has only 11% of tenants dissatisfied with their accommodation, compared with 16% of social renters
• has twice as many tenants in full time work as the social sector
• has property with, on average, a higher energy rating than owner-occupied properties.
“But, even though we dispute the extent of growth in our sector, it’s inevitable, in a recession, that more people turn to renting rather than buying,” says Alan Ward
“For one thing, fewer houses are being offered for sale and new-builds are also down dramatically with only 60,000 built last year – so people who have no need to move are renting instead.
“The availability of mortgages and the level of deposits required – not less than 20 per cent – means first time buyers are staying in rented property for longer.
“And for some, it’s a lifestyle choice to rent rather than pay for a more expensive mortgage. Typically £650 would pay only the interest on a £160,000 mortgage rising to around £1,000 a month on a repayment – which equates to the rent on quite a large property outside London.
“And that would still only represent a house at £200,000 – so renting can make financial sense.
“In major cities the rental market generally remains strong and, in the uncertainty of recession, tenants are tending to stay put rather than moving around.
“We expect rental demand to remain strong for the foreseeable future – unless the government introduces any unnecessary legislation that forces landlords out of the market.”
(*) www.communities.gov.uk/publications/corporate/statistics/ehs200809headlinereport
• The Residential Landlords Association is a leading national organisation with members owning over 100,000 properties in the UK’s professional private rented sector. The range of members’ services – on www.rla.org.uk – includes legal advice, insurance, financial services, credit referencing and training.
