Owner occupation of homes is now at its lowest for 11 years, whilst one in every six homes in England is now a private rental property, new figures from Communities and Local Government have revealed.
The figures show that 17.4% of homes are now within the private rented sector, 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 since 2000.
The CLG’s figures (look for Table 104) can be viewed at
https://www.communities.gov.uk/housing/housingresearch/housingstatistics/housingstatisticsby/stockincludingvacants/livetables/
Comments
Mustafa - the 500k it would cost to buy this property (if i was stupid enough to pay asking price) is better invested in my business/and other investments. At a return of just 5% per annum, its giving me a return of over 2000 per month. And if you were naive enough to buy the property at the asking price and rent it to me at 1200 per month you would be getting a yield of just 2.9% which is unlikely to even cover the cost of your capital.
There are some circumstances when buying is more economic (i am a homeowner with no mortgage by the way!) but also circumstances -as in this case, where it is cheaper to rent. By the way -as a professional landlord you will know that the average rental yield is around 4.8% at the moment so why on earth you might think the example cited would be a good deal is beyond me.
Tom,
As your landlord Im not worried about falling property values as each month I collect £1,200 rent from you, as for maintenance and insurance I only insure the building at a cost £12 a month I believe you have contents insurance and I dont really care about the maintenance although now you mention it the front door needs painting..... My brother will be around soon to paint it pink, OK?
I own 36 properties and id be willing to sell everyone of them if the price was right!
Tom, i would not say the rise in landlordism is worrying, and as for modern day slavery - depends on what you rent/buy. Take property:- http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=0&pid=8531926
If i bought it, its gonna cost me £20-25k a year in interest payments/lost interest(on capital invested)
I can however, rent the same property for 14k a year, have no worries about falling house values, and not have to pay any maintenance, insurance:-
http://www.findaproperty.com/displayprop.aspx?edid=00&salerent=1&pid=9621768
who is the slave- tenant or landlord?
Property ownership = the number of properties
Not enough properties have been built to meet housing demand, we have ended up with overcrowding, exploitation etc.
A 'property' can be owned by the council, the state, a company, charity, individual etc.
The rise in landlordism is very worrying, it is modern day slavery.
You have to consider property ownership by measuring the rate of ownership according to the type of owner.
OKAY... Industry Observer has complained that no-one has posted here - so I will!
This story is negative AND positive. Depends how you want to read it, and what your agenda is.
Here's ONE viewpoint:
Less people live in homes that they own (whether outright or mortgage...). NOT good - IF you are one of the 3.9 million family units who live in private rented - and IF they all WANT to buy and COULD.
More homes are 'owned' now than at ANY POINT in history. Good.
3.9 million homes are owned by private landlords. Good OR bad for them - depends whether they are professional, 'hobby', or accidental landlords.
The undeniable fact is that the report shows that PROPERTY OWNERSHIP has risen consistently since 1991.
Now - over to you, HPCers, for the alternative take...