Value of private rental sector now over £500 billion

Posted: 14 Jul 2008 13:22:23 GMT

The value of the Private Rented Sector is now larger than all privately-owned property and the rental market is helping to "stabilise housing".

The value of the Private Rented Sector is now larger than all privately-owned property and the rental market is helping to "stabilise housing".

That is according to a report by the Association of Residential Letting Agents, Arla, published today (July 14th).

In Part I of The Modern UK Housing Market - Origins and Prospects, Michael Ball, professor of urban and property economics at Reading, forecasts that rents will rise by ten to 15 per cent in 2008 and 2009.

Ian Potter, Arla's head of operations, explained that problems encountered by young owner occupiers in the last housing market downturn led to the Arla taking "the initiative and launch[ing] buy-to-let to re-build and re-finance the Private Rented Sector and to mitigate the dreadful social consequences of housing boom and bust. It has proved to be remarkably successful".

The report suggests that a steady growth in the number of private tenancies of about three per cent a year is expected.

© Houseladder Ltd