Government to improve house building to meet rental demand

Government to improve house building to meet rental demand

4th Feb, 2016

The rental sector of the UK has a prevalent supply and demand issue, which is due to the fact that the government are not putting enough focus on building homes for potential tenants. 

According to a recent estate agent report, the severity of this situation could continue in the future. As prices of houses increase and fewer affordable homes are available to buy, more people may be swayed to rent.

The government has announced plans to put in place the infrastructure to see 400,000 homes built. However, estate agents believe that this will still not be nearly enough to meet demand levels, therefore increasing the rental demand to more than 1.1 million tenants. 

This will mean an additional 220,000 homes being built every year over the next five years just to meet demand, putting even more pressure on the ever increasing build-to-rent market, which is expected to become more prevalent in the coming years.
Many experts have suggested that the government is out of touch with reality and needs to lift the focus from home buying to the private rental sector. We need to see more houses constructed to meet the increasing level of demand for rental properties.

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