11 Oct

Private rental growth to plateau

Private rental growth to plateau

Although buoyed by buyers' enthusiasm for buy to let mortgages, the private rental sector will never be as large as those of foreign countries, it has been claimed.

According to Malcolm Harrison, spokesman for the Association of Residential Letting Agents, the private rental sector was in dire straits being revived by Britons’ keenness for buy to let mortgages.

He said: "By the end of the eighties the private rental sector had nearly died, and it picked up through the nineties. Then buy-to-let gave it a boost primarily by bringing better standards into the rental sector."

The growth of the sector that has recently been apparent is unlikely to be maintained in future however, meaning that we will not see the UK private rental market become as large as it is in some European countries, Mr Harrison predicted.

"I don't think we'll ever get to the proportion of renting that you see in Europe, and North America, actually," he said.

"All our forecasts suggest that the private rented sector will increase from its current 11 per cent of all housing to round about 15 per cent of all housing in the next ten years."

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