Private rental sector 'vital to buoyant housing market'

Posted: 05 Feb 2010 09:38:53 GMT

The private rental sector is a vital component of the maintenance of a buoyant housing market in Britain, it has been suggested.

Mark Garner, founder of LettingZone.com, says: "The private rented sector is absolutely essential to a healthy economy as it allows people to move and find jobs while not committing to all the purchase costs."

His comments come in response to a recent consultation document, released by the Treasury, which hopes to focus on the role that this area of the housing market should play in the economy as a whole.

Sarah McCarthy-Fry, exchequer secretary to the Treasury, says that the private rented sector is the most "affordable, flexible and responsive" area of the market.

But Mr Garner says he believes that the government and local councils have not done enough to help the sector, with various taxation policies and deposit schemes presenting a block to further landlord investment.

The British Property Federation recently advised that private buy-to-let landlords are the only way to fill the housing gap in the UK property market.

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