The Government has put housing to the top of the agenda – and with it, the private rented sector.
The claim was made by civil servant Terrie Alafat, director of housing growth and affordable housing at Communities and Local Government.
Speaking at the National Landlords Association’s annual national conference, held in Manchester at the weekend, she said the private rented sector will play an increasingly important role in providing housing and is becoming the tenure of choice.
Sh said: “It is an exciting time for the private rented sector. Housing is definitely at the top of the Government’s agenda and the private rented sector is in the middle of all of that.
“We know that demand is continuing to grow and the sector has responded to that, expanding to house about 3.4 million households in England, which is an increase of one million since 2005.
“There is recognition about the flexibility of the sector. It isn’t a last resort, it is actually a sector which is the choice for people who do want that flexibility, who may want to move to work.
“It provides housing for those who can’t access other forms. We know social housing is hugely under pressure and home ownership is more and more difficult for first-time buyers.”
David Salusbury, NLA chairman, said: “This year’s NLA conference was another success. It was encouraging to hear such positive comments from senior government level about the important part the private rented sector plays in the UK housing solution.
“It is vital that the UK is able to offer a diverse housing mix, and the NLA will continue to work with the Government to help provide flexible options in this time of high demand.”
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Comments
New property might cost more if the building costs have gone up. Can't see that applying to older property though.
A fundemental......that all pundits should understand
Basically people WANT to BUY and eventually OWN their property but that does not mean that everyone can afford to do so. Property building and fitting costs are rising fast - that means that property will cost more in the future whatever HPCers say?
@ Jimmy
"The Government cannot see a way to support first time buyers so they are bigging up the benefits of renting."
The government shouldn't be supporting first time buyers anyway. Why should they prop up unsustainable property prices with tax payers money by encouraging people to buy with 95% mortgages at a time when interest rates can only go up (making mortgages less affordable) and when house prices are on the slide? Who will be left holding the can when prices decline furhter? The buyer and the tax payer that's who, certainly not the mortgage provider.
What we actually need is incentives for long-term investment in the rented sector by blue chip funds and institutions. Only by doing this will we encourage long term tenancies (or dare I say it Assured Tenancies) and stablity in the lettings industry.
Nearly everyone doing BTL over the last 10 years has been relying on unsustainable short term capital gains rather than good long term yields. Now we're finding forced landlord who will sell as soon as possible. All this leads to is instability.
Renting will always be seen as second rate while there is a lack of stability for tenants. How many people out there really want a 3 month tenancy?
If this not simple government rhetoric and expansion of the UK residential lettings market is truly seen as of key importance lets see the government demonstrate this by announcing a range of proactive measures that could be for starters but not limited to:
1. introduce a range of tax breaks for those investing into buy to let
2. introduce BTL mortgage lending targets to lenders just as they have done for SME business lending
3. postpone the planned reinstatement of stamp duty up to £250,000 in March of next year by another two years
4. Incentivise developers with tax breaks to take profit in the form of retained units for private rental
The referred to expansion of the private rental sector of a million units since 2005 is primarily the result of the BTL explosion and I flag that sector rapidly declined with the onset of the Credit Crunch so we have not seem the rental market expand in meaningful numbers since 2008, so supply is now well out of alignment with supply.
I suspect there are many UK citizens that have seen their saving and pension values eroded and are potential landlords; these people need incentives from the government that can be relied upon, long term to get them to invest in bricks and mortar for rent…after all they want to know that their investment is ‘as safe as houses’!
Well here we go again.......................We have a mate of that other waster Shapps coming to the fore with nonsensical comments. This is one more to take the pi55 out of if she keeps making these sort of statements.
I wonder what the announcements later today about boosting the economy will do for us. No doubt they will be as useful as a chocolate tea pot.
“It is an exciting time for the private rented sector. Housing is definitely at the top of the Government’s agenda and the private rented sector is in the middle of all of that.
HOUSING is at the top of the agenda and RENTING is in the middle of that.
Since when was middle top - if it was my mid table footy team would win the Premiership every season!!!
This is all spin. The Government cannot see a way to support first time buyers so they are bigging up the benefits of renting.