Is the private rented sector set to grow?

The UK's private rented sector is set to grow in the future, a new report has suggested.

The latest News and Views report from the Council of Mortgage Lenders (CML) has claimed that home ownership is likely to account for a smaller section of the housing market, with the majority of potential house buyers moving onto the private rented sector instead.

According to the CML, this trend can be attributed partly to consumer preference and partly to "affordability pressures".

However, perhaps the biggest factor is a "chronic lack of supply", the CML claimed.

"Private sector funding constraints and public sector spending cutbacks are likely to produce a significant shortfall in the supply of both housing finance, and housing itself, relative to the demand for it," the organisation said.

"These were the somewhat stark consensus conclusions emerging from speakers from across the housing spectrum at the CML's Future Housing conference held last week."

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