A new report calls for large scale reform of the private rental sector, including a national landlord register and changes to the tenancy deposit system.
The Nationwide Building Society is leading a total of 25 organisations from Barratt Homes to Shelter, to analyse issues in the current housing market.
With regards to renting it says a key objective must be to create a private rented sector that works for the mutual good of landlords and renters “potentially including better access to justice, a national landlord register and reform of tenancy deposit.”
It says the challenge is that the previous inequalities between homeowners and renters were magnified by Covid.
Rental has grown significantly over the years – 64 per cent of households were homeowners in 2003 compared to just 57 per cent now.
However, it says many renters face an uphill struggle to save for a deposit, with a typical first-time buyer property deposit equating to 56 per cent of the typical annual wage.
Sara Bennison, chief product and marketing officer at Nationwide Building Society, says: “Our research and cross-industry conversations show that the pandemic has served to exacerbate long-standing issues in the housing market. Layer onto that the enormous challenge of making the UK’s homes net zero and the challenge ahead becomes even greater. The need for more homes, more affordable homes and more sustainable homes are some of the critical questions we address.”
The full report – called The Future of Home – including research by the Organisation for Economic Cooperation and Development which shows that Britons spend the joint highest of any other nation on housing, with some 26 per cent of disposable income being spent on the cost of a home on average.
This rises rapidly for those in lower earning roles, including carers, labourers and couriers, where mortgage or rental payments swallow over 40 per cent of take-home pay.
Data from Nationwide shows that currently the average first-time buyer property costs 5.6 times the average income compared to the long run average of 3.2.
The Future of Home report also looks at the differences in people’s view on housing by generations, with some stark differences emerging between age groups and across regions.
You can access the full report here.