February noticed the launch of our report entitled ‘Requirements within the PRS’, exhibiting how requirements of property within the personal rental sector (PRS) had improved considerably over the previous decade, pushed by funding from landlords.
The federal government’s English Housing Survey reveals that, in 2008, 44% of PRS houses have been classed as non-decent. Funding by landlords, supported by buy-to-let (BTL) lending, has seen that determine drop to 23%, marking probably the most notable enchancment throughout all housing tenures.
Political figures overtly demonise landlords and BTL
Throughout this era, progress was pushed by an injection of good-quality houses that diluted the pro-portion of sub-standard inventory. In 2008, 1.8 million privately rented houses have been classed as respectable; in 2021, this determine had elevated by 83% to three.3 million.
Additional to this, landlords have enhanced the PRS inventory by renovation and refurbishment, with eight in 10 upgrading each property they add to their portfolio.
Along with figures highlighting how privately rented houses are actually bigger, newer and completed to the next customary than they have been a decade in the past, information reveals they’re additionally extra power environment friendly, benefiting tenants, landlords and the atmosphere.
Nearly all of landlords do a incredible job of assembly the wants of their tenants
In accordance with authorities figures, 1.9 million rental properties in England have an power efficiency certificates ranking of A to C, an increase of 1.2 million in contrast with 2011, with the sector boasting the next proportion of houses within the bracket in comparison with owner-occupation.
At odds
This may increasingly shock a number of folks as a result of it appears at odds with experiences within the media that appear to solely give attention to stunning examples of poor-quality rental houses.
I really feel that, as an alternative of any vendetta towards landlords, that is extra an instance of the media understanding our penchant for information that outrages us; an age-old technique turbocharged in a time of click-bait content material and relentless info.
Nonetheless, such reporting is a misrepresentation of the truth, the place the vast majority of landlords do a incredible job of assembly the wants of their tenants.
Future housing coverage should be pragmatic first, widespread second
The narrative pushed by sections of the media is problematic as a result of it shapes the opinion of a public that has homeownership ingrained in its psyche, and is inextricably linked with authorities coverage, influenced by and influencing our legislators.
Main political figures overtly demonise landlords and BTL, usually pitting them towards hardworking households and first-time patrons whereas failing to acknowledge that enchancment in privately rented houses has coincided with funding within the sector facilitated by BTL finance. Figures revealed by UK Finance reveal a 61% enhance within the worth of excellent BTL balances between 2013 and 2021, to £280bn.
Extra to do
There’s extra work to do to drive out the minority of unscrupulous operators and rid the PRS of the remaining non-decent houses. We absolutely help plans to introduce a minimal ‘Respectable Properties Normal’, proposed by each Conservatives and Labour, and name on native authorities to make use of their powers to assist obtain this.
Stories within the media appear to solely give attention to stunning examples of poor-quality rental houses
Accountable BTL lending generally is a highly effective instrument right here too, with finance supplied solely on properties that make the grade now or in future.
With demand reported by landlords hitting record-high ranges final yr, additional fuelling lease will increase, there’s a clear want for rented houses, significantly whereas the social housing provide continues to fall quick.
Though the rhetoric might imply it’s unpopular with voters, personal funding is required to fulfill that want. So I really feel it is necessary for politicians to recognise the PRS as a necessary supplier of houses, assembly the various wants of hundreds of thousands, and totally different from however equal to the social and owner-occupier sectors.
Landlords have enhanced the PRS inventory by renovation and refurbishment
Doing so, and altering the narrative from one the place BTL landlords are forged because the enemy, will assist to maneuver the controversy on from one that’s dominated by soundbite politics that appears no additional than the subsequent election.
We’ll proceed to work with our business companions and different events to make sure the sector’s voice is heard, in order that future housing coverage is pragmatic first, widespread second.
Richard Rowntree is managing director of mortgages at Paragon Financial institution
This text featured within the March 2023 version of MS.
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