Private rental sector is expected to grow to £70bn by 2022
Housing minister Alok Sharma has announced widespread industry backing for the government’s plans to boost the private rental sector.
The proposals, which have been backed by the British Property Federation and the RICS, include changing planning rules to allow councils to plan for more Build to Rent homes.
In addition the government wants to make it easier for private rental developers to offer affordable rents and introduce family-friendly longer tenancies to provide better security to renters.
The government reported that across England 80,855 private rental sector homes have either been completed or are planned so far.
It is estimated that the private rental sector could grow to £70bn by 2022 and that this part of the housing market could provide at least 240,000 homes for private rent by 2030.
Housing and planning minister Alok Sharma said: “Whether renting or owning all families should have the security they need to be able to plan for the future.
“That’s why as part of our plan to fix the broken housing market we’ve been taking action to create a bigger and better private rental market, supporting new Build to Rent developments so that tenants can have greater choice.
“Build to Rent developments are a great example of doing just that, boosting the choice and quality of homes on the market – meeting the needs of renters in cities and towns across England.”
The British Property Federation and RICS have welcomed the plans to boost Build to Rent and introduce affordable private rent.
Geoff White, head of external affairs at RICS, said: “The government’s proposals to boost supply across all tenures - including measures to boost Build to Rent - is a welcome acknowledgement of the extent of the housing challenges and the scale of the response required.”