As most landlords will be all too aware, the private rent sector (PRS) has a reputation of being over-priced and unstable, with landlords often portrayed as the bad guys. Whereas the social housing sector is hailed as being the saviour of all vulnerable tenants – however, this is not the case. Recent figures published by the Ministry of Justice have really thrown a cat amongst the pigeons as of all the possession claims issued in the first quarter of 2016, 57% occurred in social housing, 15% in the PRS with 28% of claims following the accelerated procedure. It is likely that a high proportion of the accelerated claims relate to the PRS, but even if all of these claims are attributed to the PRS, this still only accounts for 43% of possession claims.

More people, including vulnerable tenants and those on housing benefits are relying on the PRS as opposed to social housing as the number of socially rented homes has decreased sharply due to properties being sold via the Right to Buy. The PRS now accounts for roughly 5 million households which equates to 19% of all households, with only 17% residing in socially rented homes.

The above figures must be taken with a pinch of salt as the proportion of repossession claims in the PRS has actually increased over time with a corresponding decrease in evictions in the social sector:

The increase in possession claims within the PRS relates to the sharp rise in the number of people living in privately rented properties, with the comparative drop in social evictions a result of the loss of a large proportion of social housing stock via the Right to Buy.

This is an important issue as it highlights that the PRS does not deserve its volatile reputation, and social housing is not the shining example of stability it is made out to be. The relationship between the PRS and social sector will continue to evolve, with the extension of the Right to Buy there will be even less social housing available and it is likely that the PRS will continue to expand.

DASH Services will continue to keep you updated, but remember, Private Sector Landlords are NOT the enemy and the more organisations that understand this and work alongside the PRS the better it will be for landlords, tenants and local authorities.

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