The UK’s private rented sector needs to add almost 230,000 homes a year to its supply every year for the next 10 years to meet the ever-increasing demand for rental accommodation.
Capital Economics research has suggested that 227,000 homes per year are required to provide approximately 1.8 million homes to the sector across the next decade. Rental accommodation is increasingly in demand after a huge surge in UK house prices has resulted in many spending far long durations in rental accommodation due to the increased period required to raise a deposit for their first home.
Recent years have seen an immense increase in the number of people within the private rented sector. In 2007 this sector comprised 2.8 million people, over the following decade to 2017 this had increased to 4.5 million, the last official figures state. The lack of increased housing supply is driving rental values with this January seeing the largest rise on record in London of 9.9%.