A Recent CIH Report Appears To Advocate The Need For Intermediate Rented Housing From Social Housing Providers As A Means Of Alleviating The Crippling Housing Shortage.

There has been a somewhat interesting report issued by the Chartered Institute for Housing (“Widening The Rental Housing Market” , August 2010) which is likely to indicate that the time when members of the UK population could expect to move into house ownership at some period in their lives may be nearing a close, leading to generations of householders who are going to rent for the rest of their lives.

The report underlines the facts that there is going to be a lengthening gap between available social housing and the demands imposed by the population with special emphasis on the group that the report calls the “inbetweens”, households earning between ?12000 and ?25000 per annum who can find it hard to find social housing , but are not in a position to save for a deposit or fund a house purchase. This is however a rapidly escalating portion of the population and is stimulating an increasing demand within the private rental housing sector .

Our continental neighbours have long considered the private rental market as an attractive proposition for long term accommodation and , whilst in the UK the trend has been that we buy homes , the French and Germans in particular tend to rent property , generally within the private rental sector. When we buy houses over here one of the first things we like to do is to reach for the Dulux and paintbrush and do a little bit of decorating. Usually though the private rental sector in the UK tends to frown on such things as decorating whereas in Germany the system is much more amenable to putting ones stamp on the accomodation and these sort of facilities, combined with a system that makes private renting more secure than it is in the UK, means renting is a popular option.

Nowadays it is still possible that we buy homes with an intention to let the property out at some stage but mostly we buy houses with the intention of becoming a traditional owner-occupier , not to rent out. This said there are still professional landlords who make a living from renting out properties to tenants, but the squeeze on mortgage cash by the banks and building societies means that, unless you are an experienced landlord already renting out a number of properties, you are viewed with some suspicion when applying for buy-to-let property finance . This can only pricipally add to the woes of the “inbetweens” as both social housing and the private rental market are becoming more and more congested. But until Government policies alter or the mortgage market becomes easier then these people will have little or no choice but to face substantial periods of renting, and as demand increases over supply then private rents will indeed balloon consuming ever more as a proportion of low to medium income households spare cash. Until we buy houses to rent out again then there can be no real improvement in this situation. And it has to be within the private sector that these rental units come from as Government has consistently failed to exercise control of either the rise in the population, leading to a rise in independent households, or to provide extra social housing for low income households

For myself , to sell my house and rent is not a option currently . Even though my income level would comfortably fit at the lower end of the “inbetweens” I bought my place with a good deposit and if I was to sell my house and rent then I would be worse off. This doesn’t stop me bemoaning the plight of the households that are not auspicious enough to own a property and are relying on either social housing , the availability of which is declining and will become less available as Government spending cuts come into being , or the private rental market in the UK with all its’ inherent problems.