Saturday, January 7, 2012
While the government frets about social housing, private rentals soar
The share of residential housing stock owned by private landlords has jumped more than 40pc since the financial crisis, and now makes up almost a fifth of the total, according to estate agent Savills. [Yes, one in five homes in this country is now a privately rented home.] The tighter lending standards introduced by Britain's banks since the crisis have created opportunities for some investors, as the pool of potential homebuyers shrinks. And, according to Savills, rather than the house price appreciation that lured investors during the boom, it is the prospect of rising rental income that is proving attractive. The volume of mortgages handed to private landlords jumped 16pc to Â£3.8bn in the third quarter of last year, according to the Council of Mortgage Lenders.