Buy to let landlords can prosper from homes crisisMake Text Bigger
England faces a worsening housing crisis as house building is drastically out of pace with the demand for new homes.
The nation’s appetite for homes will run at about 250,000 a year for the next 25 years mainly due to the needs of a growing population, according to the latest government figures.
But new homes are being built at a rate of less than 100,000 a year – which meets less than 40% of demand.
The housing crisis represents opportunity for buy to let landlords who are likely to see rents and house prices increasing in the long term simply because the government cannot afford to build any real number of homes in the foreseeable future to satisfy need.
Even if they could, the likelihood is that many could not afford to buy – and the planning and building cycle means no progress is likely for several years.
The household survey data, issued by the Communities and Local Government Department also reveals:
- The number of English homes will grow to 27.5 million in 2033, an increase of 5.8 million (27%) over 2008
- Population growth will account for nearly 75% of the increase in households between 2008 and 2033
- Single households will increase by 159,000 per year, equating to 66% of the increase in households
- By 2033, 19% of the household population of England is projected to live alone, compared with 14% in 2008
- By 2033, 33% of households will be headed by those aged 65 or over, up from 26% in 2008
- The South East has the largest absolute increase in households of 39,500 per year from 2008 to 2033, amounting to a 28% increase on the number in 2008
- The North East shows the smallest growth in households, at 8,500 per year from 2008 to 2033, amounting to a 19% increase on the number in 2008.
Simon Rubinsohn, of the Royal Institute of Chartered Surveyors, said: “While the number of households in the country is projected to grow by 5.8 million or roughly 232,000 per year over the period, housing starts are running at barely 100,000 per year.
“Even if the New Homes Bonus planned by the government has some success in encouraging a higher level of delivery of residential accommodation, it’s hard to believe this alone will be sufficient to close this yawning gap.”
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