Over half of UK homes rented by 2032
A new report by the Intermediary Mortgage Lenders Association (IMLA) has said that if current trends continue more than half of UK homes will be rented by 2032.
This will be the first time for this to happen in Britain since the early 1970s, if proved true. The report identifies that since 2007 the private rented sector has grown from 14% to 18% of households, while owner-occupation has dropped from 68% to 64%.
The IMLA has pointed to several causes for private-renting's rapid rise: the fall in social housing, growing obstacles to home ownership, changes in employment landscape, greater number of students, higher immigration, later marriage and rising separation rates.
Landlords have also found themselves advantaged by low interest rates and quantitative easing, which is especially significant when compared to increased obstacles facing would-be owner-occupiers.
Peter Williams, executive director for the IMLA, said: “Growth of the private rented sector has been from a historically low base and has been fuelled by strong underlying demand. If current trends continue then demand for private rented property is likely to drive further expansion.”