This study investigated the range of policy frameworks currently in place in high income countries to promote investment in private rented housing supply. The research began with a statistical overview of the private rented sector in the 27 high-income OECD member countries (as listed by the World Bank for 2008). From this 12 countries were selected for further investigation: Australia, Belgium (Flanders), Canada, France, Germany, Ireland, Netherlands, New Zealand, Spain, Sweden, Switzerland, and the USA. Four countries were then examined in still more detail to probe the reasons for the varying levels of private rented sector investment, namely, the USA, Australia, France and Germany. The demand for and the supply of private rented housing in these countries was compared with England, although the policy related conclusions from this study apply more broadly to the UK.

Despite growth in recent years, the private rented sector in England, which accounts for 13 per cent of the housing stock, is small by international standards. The private rented sector accounts for 20 per cent or more of the stock in all the countries considered in detail and nearly half the stock in Germany (or more depending on the definition adopted). In all countries, private rented sector demand is diverse and comes from households on higher as well as lower incomes. Households that seek mobility and younger households are substantial components of demand. The private rented sector is large in countries where the demand for renting is strong from a range of income groups. In some cases the demand is driven by the lack of options in other sectors. This implies that some households are reluctant private renters who might prefer to own if this was affordable. In Germany, in particular, the tenure is also attractive because of the availability of good quality accommodation with a high degree of tenure security.