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TODAY'S OTHER NEWS

New milestone for private rental sector in England

England’s private rental is forecast to top five million households within the next two years or so.

The specialist rental platform Ocasa has analysed that after almost 20 per cent growth in the past decade, England’s private rental sector - already just shy of 4.9m homes - will pass the new threshold by 2025 at the latest.

On a regional level, the fastest growth over the past decade has been seen in the South West where private rental stock has increased 31.2 per cent from 404,768 homes to 530,975.  

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The West Midlands market has grown by 25.4 per cent, in London the market has grown by 21.7 per cent, and in the North East the number is 17.3 per cent higher than a decade ago.

Taking England’s 18.8% growth over the course of a decade, it is calculated by Ocasa that between today and 2025 dwelling stock totals could increase by a further 6.4 per cent. This is equivalent to an additional 313,906 homes which will bring the national total to just under 5.2m.

Regionally, the most new homes are expected to be added to the private rental sector in London (68,336), the South East (47,500), and North West (38,075).

Meanwhile, the smallest increase in market size is forecast to come from the North East where just 13,291 new homes will be added by 2025.

Sales and Marketing Director at Ocasa, Jack Godby, comments: “The government is trying to dampen the private rented aector by making it less and less cost effective to purchase additional homes for investment purposes such as buy to let. But there is still a huge need for rented homes in England - not every can or wants to buy their own home.”

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    Hard to see where all these new LLs are springing up from when the general consensus is more are leaving than joining.

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    The newbies are playing the long game. No longer using it as a secondary income but as a lump sum pension pot in the future. Pay the CGT and use that as a kick start in addition to corporate pension pot (employer matches contribution)

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    Tricia, no not difficult to see where they are all coming from at all. John Lewis, Barclay Bank, Lloyds Bank, General Accident, Marks & Spencer’s, massive investments by Pension Funds, some of those will have up to 10’000 Flats not a few like some private landlords, get us out of the way. We made the Business now ripe for them to take over.

    George Dawes

    Yes and all the epc twaddle thats crushing the prs won't apply to the big boys ...

     
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    Michael you are right of course. But I wonder how long the new boys will stay in the market. Once they've had a few tenants, their flats are not so sparkly (especially the JL furniture), the finance costs have escalated and there is no profit anymore. Will they stay the course or just jump ship? Many in the PRS will tell them it is not just a way to mint money even if that is the general perception.

     
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    Savill's Q2 BTR survey shows 237,400 BTR units built or in development. That's 5% of the PRS so they've got a long way to go even if they build quickly. In the meantime the Tories are kicking those who supply 95% of the PRS so hardly surprising things are going pear shaped between us. I remember Lloyds getting into the estate agency business back in the 80s with Black Horse Agencies. Crashed and burned at huge cost. Good luck with the landlord game chaps!

     
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    What when the build to rent people suffer bad tenants and can't get them out? I know they will have higher earners and 'better quality' tenants but still once they are in they are in. Can they raise the rent to get them out? They will probably have to do the whole block to avoid discrimination claims.

    They can't just sell one apartment to get them out. I can't see losing S21 for them is a good thing at all but I haven't heard anyone from BTR say anything.

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    They haven't been around long enough to try to use the court system!

     
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    Well their own retail Business are loosing ground, Banks closing down big time so now all looking for alternative money stream’s. JL says it aims to get 40% of it income from housing in the future, have marked 3 sites already Waitrose Supermarket in Ealing which they own anyway, Bromley and Reading, that’s the drift.
    M & S to Build 10 storey block in Hammersmith 400 rooms for Students they are allowed to keep AST as I understand it.

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    These figures are either incorrect or include short term rentals. In the South West there were plenty of rental properties and rooms 10 years ago, and good tenants were able to be choosy, especially with HMO's. But today there is an acute shortage, and anyone looking to move will be in competition with dozens of other applicants. It was said when covid arrived nobody was moving, so that reduced the number of vacant properties, but that number had remained extremely small. If you advertise anything you are inundated with people not just for viewings, but people who want to rent it without even viewing.

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    Well driving out landlords with removal of Section 21, introduction of Section 24, Removal of AST, causing others to switch was always going to create a shortage. The big boys are Building big time to fill the void deliberately created, look around you.

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    They can't build them quick enough though!

     
  • michael davies

    Err hang on a min,i thought there was a mass exodus that we're all selling up because we might have to insulate our houses......one day.

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    Nick, they can build quick enough, look at the night Sky in London and see how many red lights there are top of Tower Cranes I never know anything like it. Greenford Quays in Greenford Rd, thousands going up many completed on this 20 acre site, now I see they are offering first 4 weeks Rent free so they are going to get them-in but God help them after that.
    Yes speedy Building too only ground and first floors are mass Reinforced Concrete slabs, also doubled as a base for the next 5 Storey’s of pre-constructed almost pre finished Modular Units Craned into position just run half brick wall facade around the perimeter and bob your uncle.
    Michael mass exodus but those are small time landlords with a few properties and are been replaced with big Companies with a huge portfolio, So the number of landlords are not equal to the number of properties.

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    Hi Michael,

    I work in construction and am in London. Sure there's been lots of building work going on. But there's 4.4m rented households in the UK. There are only about 200k of new dwellings built every year in total. Not sure how many of that would be rentals. BTR started becoming a thing around 2013. Not sure how many of those have been built but replacing small landlords won't be able to happen very quickly.

     
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    Nick, see my comment above. 237,400 BTR units already built or in development so 5% of the total - they've got a long way to go!

     
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    Grump,

    Ah I remember your post now from earlier. I also remember Black Horse! :)

     
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    Well there’s not that many homeless in my book don’t use Council waiting lists as a guide plenty free loaders on there, you can’t assume you are going to replace all as that will never be the case and they are living some where now anyway.
    I am amused at people who can sit on the road or in Parliament protesting, how can they afford the time, are they being kept on Benefit obstructing others trying get on with their job. I suppose if they are fit enough to block the Road they are fit enough to work, stop their Benefits.

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    Totally. There's a complete lack of moral fibre in this country.

     
  • Elizabeth Campion

    Trouble is if you stop benefits it's the genuine that don't get anything. The professional claimist know how to get round the rules.
    I think we need to knock the benefit system down and reboot it some way so it goes to the real needy. There are a lot of people who are social misfits who are just not employable. Let alone who homes them.

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    More food stamps, less cash. If they want more, they have to work for it. The council could always find work for anyone, better then just giving benefits.

  • Elizabeth Campion

    Earn your dole is a better idea.
    Lots of voluntary areas needing help, work the farms, learn a trade compulsory more human .

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    The local authorities would be able to free up loads of their current accommodation to people in genuine need, if, means testing was introduced. I know of people occupying social housing who are financially more than able to look after their own housing needs.

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