“Whatever spin can be put on these figures to make them look better than they are, it is obvious that the rate at which new houses are being built is well behind target. Alongside the growing number of households, the next generation are going to struggle to find homes – rented or owned.
The Private Rented Sector has a major role to play in pulling the housing market out of the current slump and in housing people in years to come. While policy makers continue to ignore the importance of the private rented sector, they are storing up a future housing crisis. It is vital that the Government puts pressure on lenders to increase buy-to-let mortgage lending and does not put unnecessary red tape in the way of residential landlords.
The good news for landlords is that that rents and yields are likely to rise considerably as the ratio of prospective tenants to the number of rental properties increases. With official unemployment still rising fast, however, landlords would do well to protect their rental income through comprehensive tenant referencing and rent guarantee insurance.”