BUILDING SUSTAINABLE, MIXED-TENURE COMMUNITIES Britain’s future housing needs cannot be met by the private home builders alone. Even if their present output is doubled there will still be a substantial shortfall compared with the 300,000 homes needed every year to accommodate new households. The Commission has concluded there should be a major expansion of sustainable communities of mixed-tenure homes led by local government.
Rental demand In their report Rental Britain Savills and Rightmove predict that the number of households renting in the private sector will increase from 3.4 million in 2006 to 5.9 million in 2016, when the private-rental sector will account for one in five UK households. The same report estimates that £200 billion of investment is needed over the next five years to make this happen, of which only about £50 billion is likely to come from buy-to-let finance.
Research by the Resolution Foundation and Shelter tells a similar story. Demand for private-rented housing will continue to grow, reaching 22% of the housing market by 2025 under a weak economic recovery and as much as 37% in London (where it is currently 30%).17
16_ The three-year delay was reported in The Telegraph amongst other publications; see Tesco Bank finally launches first range of mortgages, published 4 August 2012 17_ Housing in Transition: Understanding the dynamics of tenure change, Resolution Foundation and Shelter, Christine Whitehead, Peter Williams, Connie Tang and Chihiro Udagawa, June 2012
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