There has been a major shift in the UK housing market that has led to an increased bias to private renting, both out of choice and out of need. These changes have their roots in tenure-neutral housing policies that have been adopted since the 1980s, the impact of which has been amplified by the general undersupply of homes and the affordability challenge faced by homebuyers.
Based on the English Housing Survey 2020 to 2021, 4.4 million households now call the private rented sector home. Growth has slowed since 2018 as regulatory and taxation changes have taken effect, although appetite for investment in the private rented sector remains strong given favourable returns compared with other investment opportunities.
A shift towards a higher proportion of professional landlords has also been seen over this period. The creation of buy-to-let has helped to shape a private rented sector that is fit for purpose and provides choice, value, and flexibility for tenants. Demand from tenants continues to be high and is expected to increase. The expansion of buy-to-let has created significant challenges for valuers in this market.
The purpose of this updated Professional Standard is to provide sufficient background information and guidance to ensure consistency in the assessment of residential investment properties to include:
This guidance provides best practice and advice for members and end users.