The latest results from the English Housing Survey have shown that the private rented sector continues to rise.
It shows that from 2010 to 2011 66% of households were owner occupied, down 1% from the previous year and continuing a trend in declining home ownership.
The social rented sector makes up 17.5% or 3.8m households, and the private rented sector sits just below that at 16.5% or 3.6m homes. Some thirty years ago social hosting was responsible for 3 million more households than the private rental sector. Today just 200,000 homes separate these categories.
Despite this private rent prices were twice that of those in the social sector. The average weekly rent in the PRS is £160, whereas social housing tenants pay just £79 a week. 63% of social renters are in receipt of hosting benefit, just 25% of those in the private sector are.
Those in the private sector tend to hold shorter tenancies, but some 43% of social housing tenants have been in the same home for more than ten years.
Grenville Turner of Countrywide, the UK’s largest estate agency chain commented on the survey: “Successive governments have widely encouraged home ownership but the impact of the recession has led to a structural change in the property market.
“The impact of this has caused an additional 275,000 new tenants to flood the private rental sector in 2011 – a 24% increase on the previous year.
“Current demand levels indicate that there will soon be more people in the private rental sector than social housing, which will only add to the already saturated demand and supply imbalance in the market.”
You can read the full report here.