One in five could privately rent by 2020, says BSHF
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One in five people could be renting privately by the end of the decade, according to the Building and Social Housing Federation.
Research also suggests that the private rental sector could be larger than the social renting sector by 2013.
The BSHF claims that the reasons people rent in the private sector are not always down to personal choice and is in danger of becoming the tenure of last resort.
It says: “It is highly unlikely that the recent addition of one million households to the private rented sector is entirely driven by choice.
“Therefore, there is an urgent need to ensure that private renting is able to meet the requirements of the households who would prefer to live in other tenures.
“Otherwise private renting is in danger of becoming the tenure of last resort, an unsatisfactory default option for households who do not have the choice to access social housing or owner occupation.”
The latest research supports John Heron, managing director of Paragon Mortgages, who predicted 20% of people will be renting privately by 2021 earlier this year.
Readers' comments (4)
Anonymous | 18 Jun 2010 5:05 pm
Looks like we will be heading for a rental crisis. The FSA will regulate BTL mortgages before long as well as ban any interest only deals. Given that the vast majority of BTL's are done on interest only we can expect a massive hike in rents which will make them unaffordable. Not to worry, we can all be housed in government homes. Oh hang on there are none due to a chronic shortgage of government building programmes. Fantastic!
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Anonymous | 19 Jun 2010 10:32 am
> Looks like we will be heading for a rental crisis.
You're completely missing the point. Households are renting because they do not have access to owner occupation - it says so in black and white in the article.
And why do you think this is? Could it be because, I don't know, houses are too expensive? And if the BTLers pull out, prices will drop, and these households will then be able to BUY a house?
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Robin Banks | 21 Jun 2010 11:22 am
Looks like Anonymous at 10:32 thinks the BTLers are to blame for the price of houses, that's far too simplistic a view and an easy jibe. There are multiple reasons why house prices are so expensive, perhaps BTLeters do hold some of the responsibility, but so do the banks who laid out easy money for borrowers and the brokers who gave them access to it so somewhere along the way, everyone is to blame.
One of the reasons why the announcement of a huge increase in renting by 2020 is no surprise is that by then, the population is expected to be somewhere near to 70m, that is a lot of people and with a reduction in house building along with the tightening of mortgage lending it doesn't take a genius to predict this one!
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Anonymous | 21 Jun 2010 11:44 am
If BTLers pull out as you say then this could possibly lead to a reduction in prices. However this alone would not help owner occupation. Owner occupation is dwindling for many reasons. One as you correctly say is prices, another is the state of the economy in general. The main reason is down to lack of liquidity in the markets. As previously mentioned in these pages the market for specialist lending has all but gone, taking with it around 20% of the mortgage market. Until liquidity and access to the specialist markets return then we will see little improvement. As for missing the point, there is one glaring fact you have missed here. If the prices were to drop to a level allowing buyers back in, which lenders do you think will be offering to lend at high LTV's in a rapidly falling market?
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