Million new homes needed to tackle rental crisis, warns Savills
The estate agency says it will cost £250 billion to create enough family homes and relieve the pressure on rental properties.
A million more rental homes are needed to meet the rocketing demand in most parts of the country, Savills warns.
And most of the new properties for rent have to be suitable for families, the estate agency says.
Savills is calling for an extra £250 billion of investment in the country’s property industry in order to tackle the housing crisis, The Times reports.
£60bn waiting
Just over 10,000 build to rent homes have so far cost £3.5 billion, and to create another million by 2031 would cost £250 billion, Savills estimates.
The agency says there is £60 billion waiting to be invested into the build-to-rent sector, mostly into houses rather than flats.
Build-to-rent can help to deliver many more homes, more quickly.”
Jacqui Daly, Director of Residential Research at Savills, says: “We need to adopt a positive response to the housing crisis, across all tenures.
“Build-to-rent can help to deliver many more homes, more quickly, and secure investment that improves the energy efficiency of the private rented sector, while meeting the needs of young, middle-income households.”
Huge increase
Average rents were nearly 9% higher last year compared to rents recorded in 2022, the latest Rental Index from Goodlord revealed earlier this month.
Despite month-on-month rents dropping slightly from November 2023 to December 2023, year-on-year figures show rents hugely increased throughout the course of 2023, with several records broken during the summer.
Across 2023 as a whole, average rents across England rose by almost 9% when compared to 2022.
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With net migration running at 700,000 a year currently and no sign of that changing anytime soon (Last year 600,000+ year before 500,000+) then will a million more new homes deal with the chronic shortage of housing?
I don’t think we have built more than 150,000 a year for sometime so when and how is this all going to happen?
I rather think our political class has haven’t got the slightest clue. All a bit worrying….