How many private rented homes does the UK need in order to meet demand?
A report by Capital Economics for the National Residential Landlords Association has argued that if owner occupied and social rented homes in the UK continue at their ten-year average rate of growth, the supply of homes for private rent across the country would have to increase to meet Government targets.
Capital Economics sets out how, in order to meet targets for housing supply, the Treasury needs to encourage investment in the sector. This includes, increasing the rate of new builds and switching commercial property to residential use. The report also points to the contribution the sector can make in moving stock from short term to long term lets and bringing empty homes back into use.
According to this research, the North West needs over 10,000 new private rented homes a year to meet its housing needs. By way of comparison, the East Midlands and Yorkshire & the Humber need over 12,000 new private rented homes each year to ensure they meet the demand requirements in their parts of the country.
The scale of the challenge in this area is even more significant in the West Midlands. According to our data, this region needs to ensure over 15,000 homes are delivered per year to achieve the necessary growth in this region.
Ruth Rowntree, North West Representative for the National Residential Landlords Association said:
“As the demand for private rental properties continues to increase, renters across the North West will struggle to find the homes they need and can afford as supply continues to fall.
“We have repeatedly warned the Government in recent years about the impact of their policies. These figures show the pressing need for a different approach to stimulate growth in the private rented sector across the region to supply the homes that people want and need.”
