With home ownership dropping to its lowest level in 30 years and property prices going nowhere but up, a lot of Brits are only left with one option: renting from a private landlord.
And although mortgage lender Nationwide revealed a fall in house price growth in March, prices are still increasing year-on-year. This leaves many homeowner-hopefuls frustrated and far, far away from ever owning their home.
Nationwide also stated that the slump in home ownership had been particularly noticeable in younger nesters, using this as an explanation why so many people currently renting privately are aged 34 years or younger.
But it doesn’t stop here. One decade up, those aged 35-44, has seen ownership rates decline by almost 20% (from 74% to 56%) between 2006 and now. This additional bracket has been putting even more pressure on the rental market, especially the private sector.
A total of 20% of homes in England are now rented privately. A new record. Ten years ago, Nationwide revealed, this number was at 12%. And the number of privately rented households experienced a rise of 75% the the last ten years and currently reaches 4.5 million.
With all these numbers in mind, any fear that the uncertainty that comes with Brexit will influence the country’s property market should be washed away instantly. Brexit won’t change the fundamentals, it won’t change the basic gap between the country’s housing demand and its supply.
And whilst in the short-term some may experience some hiccups, the long-term forecast remains the same: Generation Rent is only here to grow. In age as well as size. So let’s make sure we give them the best options available on the market.