Communities and Local Government written question – answered at on 11 June 2007.
To ask the Secretary of State for Communities and Local Government what estimate she has made of the relationship between the number of buy-to-let properties and trends in rent levels in the private rental sector in (a) Luton, (b) Bedfordshire and (c) England.
Figures from the Council of Mortgage Lenders show that the number of outstanding Buy-to-Let mortgages in England has increased from around 120,000 in 2000 to around 850,000 in 2006. Despite this increase, the private rented sector as a whole only increased over this period from about 10 per cent. to 12 per cent. of the total housing stock(1).
Table 1 demonstrates that between 2000 and 2006 the number of BTL mortgages rose considerably more rapidly than the private sector rents index(1).
(1)( ) Source: CLG Survey of English Housing.
Table 1( 1) | |||||||
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
Private sector rent index (Base 2000) | 100 | 109 | 116 | 123 | 124 | 123 | 130 |
Outstanding BTL mortgages index (Base 2000) | 100 | 154 | 229 | 347 | 437 | 583 | 706 |
(1) These figures are best viewed graphically. |
In recent years, due to the increase in supply of private rented properties, driven by the growth in Buy-to-Let, private sector rents have not been rising as fast as house prices suggesting that the private rented sector provides a more affordable alternative to owner-occupation. This relationship is displayed in Table 2.
Table 2( 1) | |||||||
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
Private sector rent index (Base 2000) | 100 | 109 | 116 | 123 | 124 | 123 | 130 |
House price index (Base 2000) | 100 | 110 | 128 | 149 | 165 | 173 | 182 |
(1) These figures are best viewed graphically. |
Information is not held centrally on the number of Buy-to-Let properties below the national level.
Yes1 person thinks so
No0 people think not
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