Almost 230,000 new private rented homes are needed each year if the UK is to meet government housing targets across the UK, claims a new report.
Compiled by Capital Economics for the National Residential Landlords Association, the finding is based in an assumption that owner-occupation and social housing availability will increase at their ten-year average rate of growth. But even if these other housing tenures doubled their rate of growth, the private rented sector would still be left to fill a shortfall of 105,000 homes each year.
Yet government figures show that the supply of private rented housing in England has fallen by almost 260,000 over the past five years.
Modelling by Capital Economics suggests that without changes in tax or other policies, the private rented sector stock will decrease further, falling by about 540,000 properties over the next ten years.
‘Today’s report highlights in stark detail the supply crisis now engulfing the sector’, said NRLA chief executive Ben Beadle.
‘For all the efforts to support homeownership, the private rented sector has a vitally important role to play in helping the Government to achieve its housing objectives. Without urgent action, the increasing number of people looking for affordable housing will be the ones to struggle as they face less choice and higher rents as supply dries up’.
