Industry report claims widespread affordability ‘remains a distant prospect’
Rents in the private rented sector are increasing, and the affordability of property in the sector for tenants ‘remains a distant prospect’ – according to a new industry report.
The third edition of The Housing Report, is an appraisal of the Coalition Government’s housing performance at the mid-term of its Parliamentary life.
The report – a collaborative work between the Chartered Institute of Housing, the National Housing Federation, and Shelter – claims the coalition is failing to fix Britain’s broken housing market, and that overcrowding, homelessness, housing costs, and affordability in the private rental sector (PRS) are all getting worse; reflecting the rising numbers of people struggling to keep a roof over their heads.
The report states, “New annual data are not yet available to assess average private rents for 2011-12, which means the light stays red, following the rent increases documented in the last edition of The Housing Report.”
It continues, “It is clear that in the long term Government will try to bring down rents in the PRS partly through changes to Local Housing Allowance, but also by increasing the supply of large scale private rented sector properties, as set out by the Montague recommendations and September 2012 housing announcements.”
The report concludes, “Until more details emerge, and new developments begin on the ground, progress on widespread affordability remains a distant prospect.”
In response, RLA chairman Alan Ward, said, “The crucial role of the private rented sector is emphasised by government and local authorities who are encouraging corporate investment in private rental housing. This must not disadvantage the private investor landlord whose rental revenue is treated as unearned income.