One in four households will rent by 2021
Around 5 million households live in private rented accommodation today and the figure is expected to jump to 5.79 million – or 24% of the total – over the next five years, a report from estate agent Knight Frank found.
Young professionals aged 25-34 make up the largest proportion of households living in the private rented sector and this is expected to remain the same in 2021.
However, the report said it expects faster growth in the number of under-25s – labelled iGens by Knight Frank – privately renting as well as an increase in older generations, especially baby boomers, looking for retirement rental housing.
The survey, carried out by YouGov, quizzed more than 10,000 tenants and found 30% of respondents rented because they were saving for a deposit to buy a property. Some 21% said they rented because it meant they could live in an area where they couldn’t afford to buy; 18% said it was more affordable than owning; and 8% didn’t want the responsibility of owning a home.
In three years’ time, 68% of tenants still expect to be renting.
When looking for somewhere to rent, affordability was the key concern among tenants, followed by location and then size of the property.