Movement into and out of the private rental sector in England

The private rental sector in England is often regarded as a largely transitional tenure. It is seen as forming the lower rung of a hierarchical tenure ladder, up which households move over time on the way to an ultimate destination of owner occupation or, failing that, social rented housing. It has been recognised, however, that households may 'fall out' of the two main tenures and return to private renting. Drawing on data from the 1996-97 Survey of English Housing, this paper examines the characteristics of households that had moved into or out of the private rental sector in the previous 12 months. Although the sector remains a net exporter of households, it was found that only part of the reverse flow back into private renting could be accurately described as a process of 'falling out' of the two main tenures. A significant share of the movement from social housing into private renting was due to households who had moved in order to live in a better house or neighbourhood. The paper outlines the reasons for this phenomenon and discusses its implications for the role of private renting in England.