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Business Leaders Call For Rental Market Growth to Solve Housing Shortage

Business leaders from across the UK are urging the government to look to the rental sector as the solution to the increasing housing shortage.

Business leaders from across the UK are urging the government to look to the rental sector as the solution to the increasing housing shortage.

With a current government target of 1 million new houses to be built by 2020, the employers’ lobby group, the CBI, has suggested that the government needs to build on the growth of the rental market, rather than focusing solely on getting people onto the property ladder.


The group have set out 10 recommendations for easing the pressure on the housing market, including the need for further growth in the rental market to bridge the gap between supply and demand.


Currently, 250,000 new properties must be built each year in order to reach the government’s target of 1 million homes in the next four years. At the moment, the construction industry is building at a much lower rate, with only 156,000 new homes built in 2015.


The CBI’s recommendations set out a strategy to help renters find suitable property by focusing their attention on expanding the private sector and accommodating the demand for homes prior to the possibility of homeownership.


The group is also urging for new incentives to be created to encourage older home owners of larger sizes to downsize or move to retirement homes – freeing up more properties to the market.


The deputy director general of the CBI, Josh Hardie, commented on the recommendations by saying:


‘If we are going to more than double the number of homes built each year, we need a step-change – not just in delivery, but in mindset. Business as usual isn’t an option.’


Last week, Savills also reiterated the rise in the demand for rental properties, with their latest projections suggesting that the UK rental market is expected to grow by an average of 19% over the next five years.

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