April 2010

Lets move with times...

BPF call to emulate US and Europe as rentals surge and ownership falls

HOME ownership has fallen to its lowest level in 20 years – and the number of rented homes is on the rise, prompting a call from the British Property Federation “a more professional rental market”.

According to the English Housing Survey, commissioned by the Department for Communities and Local Government just 67.9 per cent of English households own their home, the lowest percentage since 1991,

There was a decrease in the number of owner-occupied households from a peak of 14.8 million in 2005 and 2006 to 14.6 million in 2008-09.

 In contrast, the number of households renting privately has surged by one million since 2001, from 2.1 million to 3.1 million in 2008-09.

Private rented sector housing has accounted for nearly all household growth over the past decade, with 1.1 million additional households in the sector compared to 2000. The sector is up from 13.9% of households in 2008 to 14.2% in 2009.

There are almost as many families with children in the private rented sector as there are in the social rented sector, with the  latter dominated by retired people and lone parents.

Only 11 per cent of private renters are dissatisfied with their accommodation, compared with 16 per cent of social renters and there are twice as many people in full time work in the private rented sector as in social renting.

The British Property Federation now wants to see a more professional rental market emerge like that enjoyed by Europeans and Americans, where large rental blocks exist. The industry body says this will improve quality and choice.

Liz Peace, chief executive of the BPF, said: “We’re seeing massive demand for private rented housing in the wake of crippled mortgage markets and soaring levels of people who cannot afford to buy.

 “The Government must do something to deal with this demand or we will end up with the crisis getting far worse.

 “We should look at the housing models adopted in the USA and Europe where renting is socially acceptable and standards are higher because their governments have embraced professional corporate landlords.”