The Private Rented Sector (PRS) has doubled in size since 2004 whilst homeownership has also fallen to its lowest rate since 1985, the latest English Housing Survey has revealed.
The survey is produced by the Department for Communities and Local Government and revealed that of the roughly 22.8 million households in England, 14.3 million were owner-occupied in 2015-2016.
The Private Rented Sector has almost exploded in size and accounts now for more than 4.5 million households in the country.
John Goodall, CEO and co-founder of Landbay, said: “As house prices rise further out of reach of aspiring homeowners, home ownership levels have dwindled. Generation Rent is growing both in volume and household size, with people now more likely than ever to be in rental accommodation not just as young adults, but also as they begin and grow their families.”
According to Goodall, this is a problem that particularly continues to grow in London where extra space comes at a tremendous extra cost.
“Whether tenants are renting as a stepping stone on the way to home ownership or, increasingly, renting for life, more people than ever are reliant on a well-served buy to let market to ensure price growth doesn’t become unbearable,” he continues.
Generation Rent, the Government may be ready to help you out!
“Last month’s Housing White Paper was a promising sign that the private rented sector may finally start to be given the investment and attention it needs to prevent the market from boiling over.”
With the budget coming up later this week, Chancellor Hammond will get another perfect opportunity to show his commitment to build-to-rent developments and to prioritising where in the country they’re needed the most.
