Quarter of UK households to rent by 2021
Demand for rental property in the UK will continue to rise in the coming four years, as house prices increase above wage levels, according to a survey from YouGov.
From 21 per cent of the UK’s 5 million households, the rental percentage will rise to 24 per cent by the end of 2021, meaning an additional 79,000 households.
Over the past 10 years, the proportion of household renting from the private sector (rather than from social housing providers) has doubled. Of these households, an increasing number will rent from corporate landlords and property companies in future, states the report.
Almost a third of renting households aim to buy a property of their own, while a fifth enjoy renting in an area where they could not afford to buy, and 18 per cent prefer paying rent since this is more affordable than a mortgage.
The largest proportion of private renters is young professionals aged between 25 and 34, a ratio that is expected to remain stable, though with households renting for longer as they save for a deposit. Both younger and older segments of the population are expected to rent more.
The size of the emerging ‘build to rent’ sector, with professionally-managed rental property in purpose-built blocks, is predicted to expand from £25 billion to £70 billion by 2021.