Analysis of UK Private Rental Housing: Factors and Policies

This essay examines the UK's private rental housing market, analyzing the factors that determine rental prices and the influence of governmental policies. The introduction highlights the role of supply and demand in the economy and their impact on prices. Task 1 delves into the factors affecting the demand and supply of private rental housing, including government taxes, income levels, location, local demand, interest rates, house building, and government policies. Task 2 then explores the governmental policies that influence the private rental housing sector, such as economic and customer standards, regulation of small providers, social housing reforms, affordable home programs, social housing fraud, and the 'Decent Homes' policy, which aims to ensure social housing meets minimum standards. The essay utilizes examples to illustrate the points and concludes with a summary of the findings.

Essay

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Factors to determine the prices of private rental housing in UK................................................3
TASK 2............................................................................................................................................5
Governmental polices which influence on the private rental housing in the UK....................5
CONCLUSION................................................................................................................................8
REFERANCESS..............................................................................................................................9

INTRODUCTION
Supply and demand are two important factors in the economy which affect the prices of
the goods and services. Every small and large organization analysis the future demand of their
product and this decides their prices of the commodity. Demand of the product within the
country increases than prices increases and quantity of the product decreases. During the
increment in the supply of the commodity then prices decreases and quantity of the product
increases.
This report will cover analysis the demand and supply to find-out the prices of the private
rental housing the United kingdom. It will also includes the factors like Taxation, income,
population and other factors will be used to analysis demand and supply. This report will also
analyse polices of the UK government which influence the private rental housing and how this
affect on the rental housing in the United Kingdom with the use of proper examples.
TASK 1
Factors to determine the prices of private rental housing in UK
There are some factors which affect on the demand and supply of the private rental
housing in the UK. Factors such as the demand increase , income of the people, government
taxes etc increase ad decrease the prices for the private rental housing. The prices paid by the
tenants in the UK which increased by the 1.3 percent in the last 12 months to the may 2019. up
from the April 2019. For example people who were paying rend for the proper suppose it was
500 every moth in the 2018 but after the increment in rend of 2019 its reach to the 506.50. The
private rental housing prices for the UK excluding the London growth by the 1.5 percent in the
12 moth incense it is mostly populated areas and their people are earning high income
(Chisholm, Howden-Chapman and Fougere., 2020). Here are factors - Government Tax- When
government in the UK increase the taxes on the private rental housing then it affect on the
demand and supply both because the private housing landlords also increase the prices of their
rend houses because they have to pay extra charges to the government and this value they add in
the prices of this affect on the demand and people prefer not to rent any house. Government
increases and decrease the prices of the and taxes. The past two schedules have been seen the
rapid development and growth of the private rental housing in the United Kingdom. In 2001
and the 2011 this sector increase in double digits and the account of the 20 percent of the
households in the England. Income - one of the proper defining housing shifts of the 21st

century in the UK has been compression of the Home ownership and the social housing and the
continues rise in the private rental housing. In the UK every 1 out of the 5 are on the rent
privately. The number in the private rental housing increase from 2007 which was 2.8 million
and in 2017 it reaches to the 4.5 million (Crook and Kemp., 2019). Most of the people who are
on the rant are younger age people and their estimated age are between the 25 to the 34 years
who are typically earning money. They are not able to give if rents to the private house owners
because they are not earning money. Their main sources of the income are their parents or the
part-time jobs. They can pay limited amount of the money for the rent so private rental housing
owners have to decrease the prices of the rent and give on the law prices. Location – location is
always a factor which affect the prices of the private rental housing and their supply and demand
as well. Most of the areas in the UK Rural area and people who rent the prices for their private
huge is high as compare to the rural and undeveloped area in the United kingdom. Locations like
London where most of the people live on the rent have to pay high prices because it is city area
but in the rural areas and city of the UK have to pay low rant to the landowner because people
are no0t in the developed areas, and they do not get the prices because their land prices in that
area is law which is decided by the government (Haffner, Hegedüs and Knorr-Siedow., 2018).
Local Demand factors- local Demand in the UK also a factor of the private rental housing in
UK. Demand in the Local area of the UK for the private housing rent is high than the house
owners increase rend because people are ready to pay the rent to the house owners bout there is
one pick point of rend and from that point demand decreases and owners also have to decrease
their rent prices and give their house on rend on law prices to the people. Interest rates - when
the interest rates on the housing loans goes downer than most of the people buy the houses, so,
so they can give their house on rend and earn money from this. It means interest on the housing
loans create a opportunity for the Private house owners which is smart investment for the
people. Most of the people but the house properly when they get house loan in the law interest
rate, and they purchase houses on the rent and give for the rent to the people (Hulse and Yates.,
2017). Demand of the private rental housing is higher in the UK which is beneficial for the
people who get housing loan in the lower prices which become their sorcess of the income.
Many people take a loan top take the house rend and when interest create is law than they can
use it to take house for the rent, and they an leave in the private rent house. House Building –
this is also a factor which affect on the private rental housing Price and demand and supply. The

areas cover5d in the building for the rent affect on the prices of the building. If the area of the
building is in the large area then people have to pay high rant to the owners and if the area of
the building is limited or the small than rent amount will be law as compare to the large area
cover by the building. More space comfortable for the whole family and most of the people
demand or the house which covered large area, and they ready to give high prices for the house
rent. Government also have give permission to the house owners to make limited blocks for the
house rend, so they have to follow the polices of the government. Demand for the small area
building are law in the United Kingdom because of less facility, area so people ready to give
their house for the rent in the law prices. This is beneficial for the young generation who have
very law income, and they are not bale to pay high prices, and they just need very less area
building to live. Government polices – Government also have make polices which have huge
affect on the private rental housing. In some areas' government have set the fixed prices for the
rent. They owners of the house have to follow all the legal rules of the government (McKee,
Muir and Moore., 2017). It will be illegal for the people who are no following the government
rules and taking more than the rent decided by the government. UK's government can change
money from the house owners.
TASK 2
Governmental polices which influence on the private rental housing in the UK.
The homes and communities Agency's standard are classified as either customers or the
economic. All the registers providers have to provide and meet the customer standard but for
the private providers (private rental housing) need to meet the economic standards. Both the
standard set on the Regulatory Framework For the social housing in the England for the April
2012. This policy was made to regulate the providers to defend public finance in the social
housing, Also motivate the private investors to take interest in this sector. This helps to enable
landlords to be able to invest in the new social housing, assuming others conditions are in the
place. Delivers value for the money improvement to give help to the providers to deliver their
social housing objectives.
Economic Standards – These Standards apply to the all registers private housing
providers expect for the local authorities. This policy assesses that good the providers are
meeting the economic standards. As the regulator government will proactively see to assurance
from the Private housing providers which they are meeting the economic goals.

Customer standard - customer standard are concern with the private house owners who
are registers and this also include the authority. Government set this standard so that landlords,
tenants and others know what is excerpted of them. This provides the authority to the tenants to
hold house owners to account (Mele., 2019). Provider boards and the local authorities are
responsible for the creating sure their business meets to the standard of the customers. There are
4 customer standards which are tenancy, Tenant involvement and empowerment and
Neighborhood and community.
Regulation of small providers- While the governmental standards which apply to the
registered the private house providers regardless of the size, the focus of the governmental
activities is on the larger and more complex that own and manage to approximately 1000 houses
and the some private house providers who have less than the 1000 homes should expect to
have the less contact with the governmental regulators. The regulation on the small private
house providers includes the annual account audited by the independent accounted to the small
private house providers.
Social house reforms – Loyalism Act which was reformed in 2011, which was made
for the social housing system (Moore,., 2017). This regulation includes rules such as- the
given landlord more flexible on the types of the tenancies which can be offers while protecting
the existing tenants rights. This act made easier for the tenants to move towards the social
factors by introducing the national home swap scheme Home Swap Direct.
Providing affordable Home for the rent – On the July 14 the ministers for the Housing
made the statement and announce the outcomes of the affordable homes program 2011 to the
2015, managed by the Homes and communities agency. In this program movement introduced
the low rend products which allow the registered private housing providers to charge no more
than the 80 present of the rent which they are taking in the local market rent for the new houses.
Affordable rent gives housing providers more flexibility on rents and use of assets, while
providing accommodation for people who need social housing.
Social housing fraud- Current research by the Audited account Committee advise
around 100,000 social houses in England could be lawfully occupied With around 1.7 million
family on the waiting list for social living accommodations and around another 250,000 social
households formally classed as overcrowded, social housing fraud needs to be stopped. Many

social landowner are exploding their efforts to stop crime in their housing stock. As a result more
social homes have been healed for their seemly use.
Decent Homes ; Refurbishing Social Housing – Thus is the detailed page of the policy
related to the private rental housing for the United kingdom. The UK government believes that
the all the social housing should meet their lowest decency and the social shrouding should be
free of the safety and the health hazards, reasonable of repair , they have reasonable moderns
kitchens, bathrooms and the boilers. In the 2011 there were 217000 council houses which were
the such as the poor state of the repair which they do not meet this standard. To help the local
councils with the worst housing , the UK government provides more than 105 million has been
allocated for the 2015 to 2016.
Anti- social Behavior in the housing - Anti Social behavior is the most serious abuses
of the private housing renting and this causes misery for the contiguous neighbors and the
serious damages to the whole community (Pawson, Milligan and Yates., 2020). The HCLG
known by the Department for the communities and the local government support the landlords
who stop this behavior. HCLG also work nearly to the home office on the anti- social behavior.
Through the anti- social Behavior crime and policy act 2014 government introduced the
mandatory route to the eviction where a tenant has been founded guilty by the UK court for the
serious housing related anti social behavior or any type of the crime which is similar to the
housing and rental private houses by any person. Government also increase landlords ability to
seek ownership in abstraction to riot related discourtesy anywhere in the UK, as well as for
offense oriented against the landlord or their self-propelled vehicle away from the neighborhood
of the tenant’s place. The new powers will be accessible to social and private landowner.
Tenant empowerment program - government is giving all the social housing tenants
power to ensure their landlords to provide the facilities demand by the landlords. They also
offer the advice the support for the tenants interested in the taking up the tenants empowerment
and participation opportunities available to them. Right to manage - local council tenants have
to the right to take over the management of the local housing services. The right to manage
regulation 2012 set out of the procedures for a tenant ,management organization to the enter
into a management agreement with the local housing authority.
Housing Revenue Account Reform – UK government have reformed the council
housing finance in 2012. government has ended the housing account subsidy system, which

meas this council cam now keep their rental income and use it for the fund and their housing
stock. Councils whose existing housing debt was higher than the value of their stock had some
debt paid by the government.
Private rented sector – The private sectors has been increases their growth and
improved in the recent years and their account for the around 16.5 percent households, or
nearly 3.8 million homes in the England. The private rented sector offers a flexible form of
tenure and meets a wide range of housing needs.\
CONCLUSION
As per the report has been analysis the essay on the private house rating in the United
Kingdom. It has been analysis the demand and supply to find-out the prices of the private rental
housing the United kingdom. It also has been included the factors like Taxation, income,
population and other factors will be used to analysis demand and supply. This report has been
briefly explained the polices of the UK government which influence the private rental housing
and how this affect on the rental housing in the United Kingdom with the use of proper
examples and the Act made by the government.

REFERANCESS
Books and journal
Chisholm, E., Howden-Chapman, P. and Fougere, G., 2020. Tenants’ responses to substandard
housing: Hidden and invisible power and the failure of rental housing regulation. Housing,
Theory and Society.37(2). pp.139-161.
Crook, A. D. H. and Kemp, P. A., 2019. In search of profit: housing association investment in
private rental housing. Housing Studies.34(4). pp.666-687.
Haffner, M., Hegedüs, J. and Knorr-Siedow, T., 2018. The Private Rental Sector in Western
Europe. In Private Rental Housing in Transition Countries (pp. 3-40). Palgrave Macmillan,
London.
Hulse, K. and Yates, J., 2017. A private rental sector paradox: unpacking the effects of urban
restructuring on housing market dynamics. Housing studies.32(3). pp.253-270.
McKee, K., Muir, J. and Moore, T., 2017. Housing policy in the UK: The importance of spatial
nuance. Housing Studies.32(1). pp.60-72.
Mele, M., 2019. Private rental housing in transition countries. An alternative to owner
occupation? edited by József Hegedüs, Martin Lux and Vera Horváth, Palgrave Macmillan,
UK, 2018, xvi+ 418 pp., 109.99 Euro (Hardcover), ISBN 978-1-137-50710-5; 84.99 Euro
(Softcover), ISBN 978-1-349-70110-0; 91.62 Euro (e-book), ISBN 978-1-137-50710-5.
Moore, T., 2017. The convergence, divergence and changing geography of regulation in the
UK's private rented sector. International Journal of Housing Policy.17(3). pp.444-456.
Pawson, H., Milligan, V. and Yates, J., 2020. Private Rental Housing: Market Roles, Taxation
and Regulation. In Housing Policy in Australia (pp. 177-215). Palgrave Macmillan,
Singapore.

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328803663_The_Impact_of_Taxation_Reform_on_Private_Landlords