by Inhouse Reporter
23. August 2012 10:53
This Montague Report summarises the results of Sir Adrian Montague's review of the barriers to institutional investment in private rented homes, which examined how best to encourage greater investment in rental properties and sought to explore the factors that might encourage institutions to invest in new homes for rent.
Summary:
- Today the private rented sector houses 3.6 million households – this compares to 2 million in the early 1980s. (An increase of 56% over 30 years)
- Around a third of households in the private rented sector are families with dependent children
- 20% of households in the private rented sector have been at the their current address for more than 5 years
- 1% of landlords own more than 10 properties
- Every £1 million of new housing output supports 12 additional jobs per year – 7 directly and 5 indirectly
- For every £1 invested in the construction industry, £2.60 is generated elsewhere in the supply chain
- The number of households will grow by an average of 232,000 per year until 2033
- Mortgage lending across the board has roughly halved since 2006-07
- Returns on residential property have totalled 9.6% on average over the last 10 years – in comparison, commercial property ranges from 7.3% to 5.7%
- Capital growth delivered an average of 5.9% annually over the last 10 years compared to 3.5% in income return
- Britain has enough surplus land to build 100,000 homes by March 2015
The Montague Report is only available on-line.
You can down-load it >>> here.
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