Privately rented homes are likely to be an even more significant key to future housing needs by the end of this decade, says the Residential Landlords Association (RLA).
The RLA’s comments come as a new report suggests one in five households could be renting their homes privately by the end of the decade.
And, by 2013, the private rented sector could overtake the social rented sector.
According to the report, by the charitable housing think tank the Building and Social Housing Foundation, the relative size of the owner occupied sector has declined and the private rented sector has significantly increased - for the first time in a century.
For a variety of reasons, more and more people are becoming private renters and the BSHF is highlighting the urgent need to ensure that this housing sector is able to meet future needs.
The RLA is concerned too. “The private rented sector is crucial to the UK housing mix,” said chairman Alan Ward.
“According to an English Housing Survey private tenants are in general more satisfied with their homes than those in social housing and the private rented sector is essential to provide short term accommodation for young people who have to move to further their careers.
“At a time when government funding is strapped, it is private investment that will enable essential housing needs to be met for the 270,000 new households being formed every year between now and 2016.
“Rather than being seen as a last resort private tenancies are becoming the choice of many people who need the freedom to choose homes where they need and for as long as they need.”
He added: “And it is worth remembering, too, that private landlords also provide homes for those rejected by social housing for anti-social behaviour.”
• Letting specialists Leaders is reporting a rise in the number of landlords wanting to increase their portfolios in Eastbourne on the south coast.
Branch manager Amanda Jones says confidence in the buy to let market in the area is returning and demand for rental accommodation is at an all time high.
She said: “This is prompting investors to take a fresh look at the market. At the same time buy to let lenders are at last beginning to offer more and better buy to let mortgage deals, including the much welcomed introduction of some higher loan-to-value products.
“Another positive is that, with the recent abolishment of HIPS, there are more properties for sale at the moment, many of which would make ideal buy to let investments.
“House prices in Eastbourne are a lot lower than in other areas, making rental yields very attractive."
Leaders report that good quality properties to let are still in short supply in Eastbourne, particularly two and three bedroom houses.
Jones explained: “Done with the right advice and guidance, buying to let in this area is an excellent long-term investment.”
