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The recent English Housing Survey results for 2013/14, have just been released, confirming a further considerable rise in the private rented sector in England.
Andrew Luxton, MRICS FARLA, Partner in charge of Stags Residential Lettings Department confirms the growth in the private rented sector and the corresponding drop in those owning their own home:
In 2013/14, 19% (4.4 million) of households were rented privately, up from 11% in 2003.
In 2013/14 almost half (48%) of all households aged 25 – 34 rented privately, up from 21% in 2003/04. Over the same 10 year period owner occupation in this age group has dropped from 59% to 36%.
Monthly rents outside of London were £628 per calendar month average and in London £1,217 per calendar month for 2013/14.
The proportion of all households in owner/occupation has decreased from 71% in 2003 to 63% in 2013/14.
Andrew Luxton further confirms that the survey proves how important the private rented sector is in meeting the increasing housing need. There are a number of factors over recent years that have led to the rise in the private rented sector but it is mainly due to changes in the law in the late 1990’s which removed rent controls, the Assured Shorthold Tenancy became standard which provided greater flexibility and in addition lenders also introduced the Buy To Let mortgage.
This survey will further help to encourage those looking for investment opportunities to consider Buy To Let, especially with the impending changes to pension rules that will allow many to convert their existing pension fund into cash that can then be used to purchase a Buy To Let property.
Also, without question, the rise in the numbers of those renting will be accompanied by increasing legislation to protect the consumer, namely the tenant and to ensure that the general standard of private rented accommodation improves. It is likely that this will be accompanied by the full licencing of landlords and letting agents which we welcome as a firm.
For further advice on any aspect of Property Letting or Management, Buy To Let then contact your local Stags office or download our Buy To Let Guide>
