People in UK renting for longer

Photo credit  quinn.anya

The group's latest report shows that there were 4.3 million households in the private rented sector in the UK in 2011, a mark of the rental trend that has continued throughout the 21st Century. Indeed, homeownership began to decline even before the credit crunch, notes Savills, while the social rented sector has also continuedits relative decline.

The growth of the private rented sector is expected to continue, adds the report, with the number of households renting predicted to rise by one million in the next five years.

Indeed, renting is perceived as a short-term housing solution, but more people are renting for longer thanks to low property affordability. The majority of private tenants are aged between 25 and 34, but the fastest growing group is ther 35 to 44 baracket, a quarter of which are made up of young families.

"They are what we call ‘Generation Rent’, and we expect many will never own their own home," says Savills. "The mismatch between supply and demand is driving up rents and forcing tenants into sometimes poor quality rental housing with little security of tenure."

"Our exclusive survey of 2,300 tenants conducted by YouGov revealed that there was a greater desire for longer term tenancies among those over 35, while younger tenants prefer flexibility."