Rent or buy? Almost one in four properties are rented
Nearly one quarter of UK properties are now privately rented from landlords and the number of households in the private rented sector has more than doubled since 2001. As the rise in house prices continues to out-pace average wage increases, particularly in London and the South East, renting for many people has become the only affordable option.
Other economic conditions have also contributed to the trend of renting. Insecurities with the housing market, job security, and the managing of household finances have made the flexibility and convenience of renting more attractive.
It has been forecast that by 2025, there will be slightly more people renting privately than owning their own property with a mortgage. It is believed that a further 1.8 million households will become private renters. This is despite the fact that the cost of renting continues to increase at a significant rate. It was recently reported that rents have increased by 12% in the last year.
However, by 2025 there will be a record number of people owning their own homes outright. The current number of households is approximately 8.4 million and it is forecast that this number will rise to 10.6 million households. This is approximately 35% of the total. The main factor behind this is the rising proportion of over 60 year olds in the UK, who are more likely to have paid off their mortgages.
Please contact us if you would like more information about the issues raised in this article or any aspect of buying or selling a house, please contact Gavin O’Donovan or Shyam Patel.