Housing survey profiles buy to let in England

Posted on 25 February 2011 by LAN editorial team

The first decade of the 21st century has seen the rise of the private landlord as renting a home has surged at the expense of families owning their own properties.

In a decade, the number of private rented homes has increased from 1.1 million to 3.4 million and now accounts for around one in six of homes (15.6%) in England.

The figures come from the latest English Housing Survey from the Communities and Local Government Department.

The survey gives a snapshot of the housing market during 2009-10.

For landlords, the survey profiles the English private rental sector and gives some idea of how to market buy to lets at the right tenants.

In direct contrast to the private rental boom, the number of private owner occupiers has dropped from a peak of 14.8 million in 2005-06 to 14.5 million in 2009-10.

The number of tenants in social housing is also falling, from 19.5% in 2001 to 17.0% in 2009-10.

Couples living are the most common type of household renting a home (26%), with single households for under 60 year olds being the second largest household type at 23%.

About half of all private renters are less than 35 with 500,000 (15%) aged 16-24 and 1.2 million (35%) aged 25 to 34.

Demand in the sector outstrips supply and is likely to do so for some years, which means landlords can keep rentals at least on par or increase them in line with inflation.

The only real concern is tenants on housing benefit. Almost one in four of private rental households picks up housing benefit – which is about 800,000 households.

Government spending cuts and the review of benefit payments will hit these tenants in October, when housing allowance is reduced to 80% of a neighbourhood’s average rental price.

Tenants will be expected to make up the difference – and many landlords fear this will spur a rent arrears crisis.

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