The UK needs nearly 230,000 new private rented homes a year to meet government housing targets, according to new research.
The report, published by Capital Economics for the National Residential Landlords Association?, shows the private rented sector supply needs to increase by 227,000 per year to meet the need of 1.8 million new households over the next ten years.
Figures show that the the supply of private rented housing in England has fallen by almost 260,000 over the past five years. Modelling by Capital Economics suggests that without changes in tax or other policies, the private rented sector stock will decrease by around a further 540,000 properties over the next ten years.
Andrew Evans, managing economist for Capital Economics, said: 'The private rented sector, which is predominantly supported by private individual investors, has a key role to play in addressing housing need in the UK. However, the stock of homes for private rent has fallen in recent years, driven partly by a series of policy changes. Without further changes, that supply could fall by over half a million more over the next decade.
'Even with increased provision of affordable housing and higher rates of owner occupation, both of which are important, our research shows that significant additional investment is needed by landlords in the private rented sector.'
