Half of Britain ‘will be renting within 30 years’
Half of Great Britain could be renting within 30 years, according to a report published today.
The report by non-profit company Million Homes, Million Lives, finds on current trends the proportion of householders who are owner-occupiers will fall from 65 per cent to 49 per cent by 2041.
It calls for landlords to make changes to encourage pension funds and life insurance companies to invest in more ‘dynamic’ long-term property portfolios.
Million Homes, Million Lives was set up by Calum Mercer, former finance director at Circle, and Natalie Elphicke, who chairs the housing working party at right-wing think tank Centre for Social Justice and has served as director of the Conservative national policy forum.
The report cites 2012 figures from the council of mortgage lenders which showing three in four private renters want to own their own home within 10 years and less than half of current social tenants want to be in social housing in 10 years’ time. However government figures show only 22.6 per cent of social housing tenants expect to buy their home.
The report calls for changes to encourage institutional investors to invest in long-term property portfolios that enable people to buy the homes they live in. It calculates such portfolios could generate returns of at least 5 per cent over 40 to 50-year terms and could be as high as 15 per cent depending on the mix of tenures.
It promotes a ‘million homes toolkit’ to help landlords ‘blend rents’ to achieve the best return. Ms Elphicke said: ‘It needs to be possible for people to buy their homes as their circumstances allow in order to meet the homeowning aspirations of the British people. It would be wrong to allow the current trends to continue.’
Million Homes, Million Lives campaigns for ‘the right homes to be built in the right places to meet current and future housing needs’.
Article courtesy of Inside Housing