A Labour party housing review fails to support housing tenure that has provided almost 60% of all additional homes since 1986.
Analysis by the Residential Landlords Association (RLA) of figures produced by the Department for Communities and Local Government has revealed that of the over five million dwellings were created between 1986 and 2012, and 57% of these have been private homes to rent.*
Individual landlords are also investing £50 billion a year in new homes to rent.**
Despite the sector being the only tenure growing, the Labour Party’s housing review published today and led by Sir Michael Lyons fails to recognise and support the sector, instead focusing too heavily on London over the rest of the country.
Alan Ward, Chairman of the Residential Landlords Association has today said:
“We welcome the report’s objectives to beef up the role of housing in Government, but the reality is that to secure the homes it needs, greater support has to be given to the provision of homes to rent.
“This report will choke off investment in the only housing tenure that has been growing and risks taking the country backwards. Perhaps little surprise as the reports’ commissioners didn’t include a representative of the private rented sector.
“Today’s report falls into the trap of being too focused on the Capital to the determinant of the rest of the country. We need a one-nation housing policy, not a one London one.”
The RLA represents almost 20,000 private sector residential landlords in England and Wales.
*DCLG Live Table 101 shows that in 1986, the total number of dwellings in the UK stood at 22,537,000 whilst in 2012 this figure was 27,767,000. Of this, private rented dwellings increased by 3,009,000 from 1,911,000 to 4,920,000. This means that private rented housing makes up 57% of all new dwellings created within this period. The table can be accessed here
**In May 2014 the Intermediary Mortgage Lenders Association published a report on the PRS which is available here.
Page 3 notes:
“Individual landlords have been responsible for the majority of the extra supply [of rented homes], which we estimate from the number of extra rented properties, has amounted to a net investment of some £50bn per annum in recent years. Probably the most significant factor which facilitated this investment was the introduction of the assured shorthold tenancy contract in 1988, which restored market pricing to the sector and gave landlords the right of possession.”