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Build to Let Property Needed to Meet Demand

February 27, 2015 | Landlord News  

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In the latest update of the English Housing Survey, it was estimated that there were 22.6 million households in England in 2013-14. Owner occupiers accounted for 63%  of households (14.3 million). 19% of households (4.4 million) were privately rented, continuing to stretch its lead over the social sector, which remained steady at 17% (3.9 million). The private rented sector comprised just 11% of households in 2003.

Households aged 25-34 are more likely to be renting privately than buying their own home, with this age group doubling its presence in the private rented sector over the last decade.

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With so many people entering the private rented sector, increasing the supply of homes is obviously crucial. The British Property Federation (BPF) believes the solution is an institutionally-funded build-to-let sector.

Melanie Leech, chief executive of the BPF, said: “Not only does [build-to-let] offer steady and attractive yields for institutional investors, but it will also provide high-quality, much-needed accommodation for those who are unable to step on to the housing ladder.”

They praised the government for encouraging the development of a build-to-let sector over the last few years, but hastened to add that, whatever the outcome in May, the future government will have to maintain the momentum if a deepening of the housing crisis is to be averted.

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