Private Rental Sector Blossoms while Social Rented Sector Wilts

13 July 2012 Categories: News

Private Rental Sector Blossoms while Social Rented Sector Wilts

According to new figures the last decade has seen the number of rental properties within the private sector increase by around 1.5million while the number of properties available in the social sector has fallen by just over one million, showing that while one sector blooms the other wilts.

The figures, provided by the English Housing Survey, show that in the decade 2001-2011 the number of private rental sector properties in England rose from 2.2million to 3.7million but the number of social sector properties i.e. those owned by local authorities, fell from 2.8million to just 1.8million. The result is that the private sector now dwarfs the social sector and the gap is set to increase as more investors see the long term potential of the industry.

Chairman of the Residential Landlords Association, Alan Ward, commented on the figures saying that even though the private rental sector is going from strength to strength the government needs to look at the way in which the industry is taxed, so that investors are encouraged to continue meeting the housing needs of tenants. He also commented on the lack of buy to let mortgage products available to investors and the fact that the number has fallen by nearly 80% over the last five years.