DCLG figures show that 17.4% of homes are now within the PRS, an increase from 16.4% in 2009 and up 229,000 by number. Since 2000, the number of properties in the sector, which currently stands at 3.9 million, has risen by 1.8 million, reflecting the shift in housing tenures England is currently experiencing.
Conversely, the number of properties in the owner-occupied sector fell from 14.9 million in 2009 to 14.8 million last year – the lowest it has been since 2000.
The findings of the report confirm the growing importance of the private rented sector and how flexible and resilient it has proved to be, particularly in recent times.
The continuing growth of the sector can be attributed to a number of wider factors such as long-term social economic and demographic changes, as well as recent economic conditions.
Nigel Terrington, chief executive of buy-to-let specialist Paragon Group, has welcomed the figures. He said: “More people are now relying on the PRS than ever before and we are certainly seeing a change in perception towards the sector.
“The increase in PRS homes is fuelled by a combination of landlords buying property with cash and buy-to-let mortgages, people letting out homes they have inherited and homeowners deciding to let their property.
“We are seeing a very different mix of tenants in the sector now. No longer is it dominated by students and young professionals, it is a much wider group including more families and mature tenants and therefore we need to have a PRS adaptable to suit all.
“However, further growth is needed as tenant demand is clearly exceeding supply and to avoid a greater squeeze on the PRS, landlords need to be encouraged to invest in their portfolios going forward.”
