A new report by non-profit company Million Homes, Million Lives predicts that ‘Generation Rent’ will slowly morph into ‘Nation Rent’, as renters outnumber owner-occupiers by 2041, if modern trends continue.
The result of analysing data for 13 months with the assistance of over 30 organisations and individuals, the report notes the decline of home ownership from its peak of 71% of British people in 2003, to 65% today. This is expected to fall further, to just 55% by 2033. With the social rented sector continuing to decline, the private rented sector will have no choice but to expand in order to provide a housing solution for the nation’s needs.
Although three-quarters of renters would like to own their own home within 10 years, the failure of housebuilding to keep pace with owner aspiration will mean 40% of renters will not have a realistic prospect of home ownership.
The growth of the private rented sector has been, and will continue to be, a fantastic market for investors. Although the authors of the report do not see the explosion of the private rented sector as necessarily a good thing, as long as high standards are maintained and tenants are satisfied, it is a sustainable long-term housing solution.
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