The percentage of households living in the private rented sector has fallen for the third year in a row according to the latest English Housing Survey.

The overall proportion has fallen slightly to just under 19% of all households in 2019/20, although still remains well above the 10% recorded in the year 2000, suggesting the rented sector has now found a new level within the housing mix for England.   

The graph below shows the pattern of PRS-tenured households across the English Regions 

Graph 1: Households in the PRS 2018/19 & 2019/20

Only in two regions - London and Yorkshire and the Humber – have the proportion of households in the PRS increased since 2018/19.  

In every other region they have either fallen, or, in the case of both Midlands regions, remained the same. 

The fall has been most marked in the South East where the proportion of households in the PRS has fallen from 18.8% to 16% in just twelve months. 

John Stewart, NRLA deputy director for policy and research said:  "While our member surveys have, for some time, consistently showed more landlords looking to sell than buy due to tax changes and increased regulation, many stakeholders in the PRS have dismissed such figures as 'empty threats'.

"But now are seeing, from independent statistics, both the numbers of PRS dwellings and their proportion of tenure share falling, it seems landlords are following through on their intention to exit the sector.

"With further pressure to come from the Renters' Reform Bill, possible Capital Gains Tax increases and full implementation of mortgage interest relief restrictions, and the possession action curtailed by emergency Covid regulations, the Government needs to restore confidence if it is to avoid acceleration of this process, and the subsequent crisis in the supply of rented homes."

The survey has also reported on rent levels. There is no regional analysis of rents other than for London.  Nevertheless, it is clear that these are tough times for landlords.

Graph 2: Average (median) weekly rents for London and England, 2018/19 & 2019/20 

In London rents rose by just £1 per week. This equates to a 0.29% increase over the previous twelve months. Outside London, median rents fell.   This reduction in rent from £162 to £159 per week is equivalent to a 1.85% fall over the last year.