Rental Grows In Dominance By 4.1 Percent

Forty years ago homeownership may have been the route of choice but according to research by the Communities and Local Government’s English Housing Report, more and more homeowners are becoming dependant on the Private Rented Sector.


In their report they revealed that since 2001, the number of UK households renting has rising from 1 million people to 3.1 million, a 2.1 million increase. Similarly this sector has rapidly grown in dominance increasing from 10.1% in 2001 to 14.2% in 2008-09…

And these figures appear to be working in direct collation with the decrease in homeownership which has dramatically dropped in popularity from 14.8 million people to 14.6 million in the last 2 years.

Yet these were not the only startling statistics to come out of this report. Continuing in their research of the UK property market, the Communities and Local Government’s English housing also revealed the following:

• Owner occupation has dropped 3% since 2003
• Social renting households have decreased by 1.8% since 2001

Private Rented Sector

• 41% of tenants rely on the Private Rented Sector for their long term housing needs and have no intention to invest in property
• The Private Rented Sector is split into: 30% one-person households, 25% couples without children and 17% couples with children
• This sector is reputed to offer the broadest variety of tenancy ages ranging from 48% 34 years and under, 22% 35-44 years old, 12% 45-54 years old and 16% over the age of 55
• Employments status: 61% full time employment, 9% part time work, 5% unemployed, 9% retired and 17% classed as ‘other inactive.’

Speaking on these statistics, Nigel Terrington from Paragon Group feels that they are proof that the government needs to recognise the growing importance of the rental sector and remove all the red tape from property investment so property investors can effectively invest in property.

With the UK population expected to grow by 10.6 million people by 2033, and the government not mustering enough property developments to cope with increases in housing demand, the government need to get their act together and acknowledge that the property market is vastly different from 40 years ago.

Original Article

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Peter Franklin, Property Mentor Delegate

I used to believe stocks and shares were the only way forward, yet after 15 years of property investing, neither of these can compare with the sheer velocity or impact that property investment can have on your bank account. Only with property can you truly experience the power of being in control of immediate cash flow AND capital appreciation. Stocks and shares simply cannot compete. Read more