New research from Zero Deposit exposes a staggering decline in the proportion of private rented sector (PRS) properties in England, plummeting to its lowest level in a decade. The surge in rent costs and an under-resourced rental sector are attributed to the government’s relentless emphasis on supporting homeownership.
The number of available rental properties has risen from 4.5 million in 2013 to 4.9 million in 2024, yet this growth fails to match the escalating demand. While the rental market struggles, the number of owner-occupied homes experiences a more significant rise, clearly showcasing the government’s skewed prioritization of homeownership initiatives.
CEO’s Alarming Warning: “Chronic Undersupply and Spiralling Rents”
Zero Deposit’s Chief Executive, Sam Reynolds, sounds the alarm, stating, “Today’s market is dominated by a chronic undersupply of rental properties, despite overwhelming tenant demand. The imbalance has fuelled rents beyond affordability, indicting multiple cabinets for letting this issue worsen.”
Reynolds adds, “Over the last five years, owner-occupied home supply has outpaced privately rented properties. It raises questions about the government’s focus on homeownership, leaving renters out in the cold.”
Budget Predictions: More of the Same Ill-Advised Initiatives?
Expressing scepticism about the upcoming Budget, Reynolds remarks, “We expect more ill-advised initiatives aimed at short-term benefits to win votes, rather than addressing the root causes for those struggling within the rental market.”
He concludes, “The sad reality is that tenants are being left out in the cold as the government appears more focused on homeowners than the pressing issues facing renters today.”
Impact on Tenants: Rising Rents Reach Alarming Heights
The lack of investment in the PRS has dire consequences for tenants, with the average rent in England soaring to a shocking £994 per month. This represents a 5% increase in the past year alone and a staggering 37% rise over the last decade. Experts predict a harrowing 16% increase by 2030.
Regional Disparities: Rental Crisis Hits Home Across England
The research reveals regional disparities, with some areas experiencing acute shortages of rental properties. Yorkshire and the Humber, the South West, the East of England, and the North West report the lowest proportions of privately rented homes in over a decade.
While London boasts the highest number of rental properties (29.5% of the total housing stock), it also bears the burden of the country’s most exorbitant rents. Surprisingly, the North East, with a lower proportion of rental properties (17.8%), offers the most affordable rents in England.
As England grapples with a rental market in disarray, tenants face an uncertain future, and the government’s commitment to addressing these issues remains a looming question.