England’s PRS will exceed 5 million homes by 2025

England’s PRS will exceed 5 million homes by 2025

12:08 PM, 24th October 2022, About A year ago 3

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After almost 20% growth in the past 10 years, England’s Private Rented Sector (PRS) could exceed 5 million homes by 2025, research from Ocasa reveals.

The specialist rental platform says that the PRS has increased in size by 18.8%, from 4.1 million homes 10 years ago to just shy of 4.9 million.

On a regional level, the fastest growth over this time period has been seen in the South West where the PRS’s stock level has increased by 31.2% from 404,768 homes to 530,975.

The West Midlands market has grown by 25.4%, in London the market has grown by 21.7%, and in the North East, the number of PRS homes is 17.3% higher than it was a decade ago.

How the Private Rented Sector will perform

Based on these historic growth trends, Ocasa is now forecasting how the Private Rented Sector will perform in the future.

Taking England’s 18.8% growth over the course of a decade, it is calculated that, between today and 2025, dwelling stock totals could increase by a further 6.4%.

This is equivalent to an additional 313,906 homes which will bring the national total to just under 5.2 million.

Regionally, the most new homes are expected to be added to the PRS in London (68,336), the South East (47,500), and North West (38,075).

Smallest increase in market size

Meanwhile, the smallest increase in market size is forecast to come from the North East where just 13,291 new homes will be added to the Private Rented Sector by 2025.

Ocasa’s sales and marketing director, Jack Godby, said: “The government is trying to dampen the Private Rented Sector by making it less and less cost effective to purchase additional homes for investment purposes such as buy-to-let.

“But there is still a huge need for rented homes in England – not everyone can or wants to buy their own home.”

He added: “Perhaps tax incentives will give a boost to the market, but in order to ensure that there are enough good homes for those who need them, more still needs to be done to make buy-to-let more attractive for landlords.”


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Comments

NigelH

14:35 PM, 24th October 2022, About A year ago

This site is full of stories about how landlords are leaving the sector in droves because of both council and government policies, yet now we are being told the opposite!
Which is right?

The Forever Tenant

14:44 PM, 24th October 2022, About A year ago

I honestly believe it's the latter. There was a similar report recently of the number of deposits being held by the 3 orgs going up.

Windsor Woman

16:25 PM, 24th October 2022, About A year ago

I thought exactly the same when I read it.

However, they are right about one thing:
"“The government is trying to dampen the Private Rented Sector by making it less and less cost effective to purchase additional homes for investment purposes such as buy-to-let.

“But there is still a huge need for rented homes in England – not everyone can or wants to buy their own home.”

He added: “Perhaps tax incentives will give a boost to the market, but in order to ensure that there are enough good homes for those who need them, more still needs to be done to make buy-to-let more attractive for landlords.”

Wouldn't it be nice if they had the ear of someone who needs to hear this....

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