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Location and quality important for rented property sector in UK

But it isn't just a matter of making more properties available to feed the rental market; it is about raising standards and having them in the right location, according to a new report.

The report from the Centre for Cities, an independent urban policy research unit, warns that in today's economic climate, it's becoming clear that Government has focused too much attention on home ownership and not enough on driving up the number and standards of homes for rent.

By 2021 it is estimated that the UK could have over 3 million renters, 1.2 million more than in 2001, the report says.

Dermot Finch, director of the centre, called upon cities to work more closely with developers, landlords and tenants and to play a key role in advising investors and property developers on what homes are needed and where, to avoid an over-supply of unsuitable and unwanted buy-to-let properties. He cited the example of Leeds where 30% of apartments in the city centre are empty.

Fiscal disincentives should be removed and buy-to-let landlords and professional investors encouraged.

'This would help the Government to deliver far more houses and give local residents more choice when deciding where to live, and when to buy,' the report added.

Mark Allan, Chief Executive of UNITE Group said raising the profile and reputation of the rental sector could significantly contribute to increasing supply and raising standards within the UK housing market.

'For the private rented sector to become recognised as a serious player within the housing agenda, the sector needs to break out of its existing mould and learn from other customer facing businesses. The sector needs to focus on delivering a product and service that is geared and marketed to their customers needs,' he added.

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