We should encourage long-term institutional investors and well-established landlords into the private rented sector

In 1989, the private renting sector began its 25 year boom. Now owner occupation is a falling share of the total. Social housing – both councils’ and housing associations’ – has shrunk, and private renting has rapidly gained so now the two forms of renting are level-pegging, and private renting is gaining ground. The private rented sector plays an increasingly vital housing role and looks set to stay. However, rapidly rising rents and poor conditions lead to intensifying discussion of how it may be regulated. Anne Power writes that necessary financial and regulatory incentives, the drivers of Germany’s success, will need to avoid any hint of rent controls. Market-linked “benchmark” rents will hopefully make the private rented sector more attractive to long-term institutional investors and well-established landlords.