A new report has found that nearly 6 million UK households are becoming private rentals due to a decline in home ownership.
This means that nearly one in four households will be privately rented by 2021. The rise in renters is linked to rising house prices and stagnant wages, which has meant that owning a home is simply not an option for millions of adults.
21% Of Homes Are Privately Rented
Nearly 6 million households, or 21% of the total homes in Britain, are privately rented, and not all of these renters are single young adults. In fact, the research found that a quarter of renters are families with children.
The report also found that around three quarters of renters live in homes that are owned by private landlords, but the number of people renting from corporate landlords is rising.
The number of renters overall is rising at a rapid rate, while the number of rented homes in the UK has doubled over the last 10 years.
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The renting population ranges from young twenty-somethings to families and couples in their forties, so there is a lot of variation. While some of the renters are currently saving to own their own homes, others are happy to stick to renting on a long-term basis. In fact, nearly 70% of the renters say that they expect to still be living in a rented home in three years.
Interestingly, the study also found that the reasons for renting are varied. While some people rent because they can’t afford a home, others rent because they believe it is cheaper than a mortgage. Some people rent because they don’t want to deal with the responsibility of owning a home. This shows that British people are changing the way that they think about living; many people now see renting as preferable to owning a home.
It is also worth noting that renting families tend to spend more. The study found that families, couples and retired people were more likely to spend more than half of their income on rent.