Forget Generation Rent, we’re on course to become Nation Rent

June 7, 2019

Research by VeriSmart, the letting compliance specialists, has looked at what point in the future the UK could lose its homeowner status as the scales tip towards a greater number of rental sector occupants compared to owner-occupiers.

The UK is a nation of aspirational homeowners, but the high cost of property has seen many remain resigned to the rental sector. In fact, when it comes to the percentage of homeowners, the UK currently ranks as the 24th lowest of all 28 EU nations at just 65%.

In contrast, the UK is home to the fifth highest percentage of tenant occupiers of all EU nations, behind just Germany, Austria, Denmark and France.

The latest data shows that since 2010, the percentage of owner-occupant homeowners has fallen by -5% while the percentage of occupants in the rental sector has grown by 5%.

Despite this, homeowners still account for 65% of the market as we remain a nation driven by the goal of owning our own home. However, should this seven-year trend persist we could start to see this change as more and more of us remain in the rental sector.

Based on the previous decline in homeownership levels, the scales would tip in favour of tenants by 2039 with 50.7% of us renting to 49.3% owning our own home. By 2045 this will have grown to 55% of the nation living in the rental sector to 45% classes as owner occupants.

This isn’t a trend driven out of necessity but rather people choosing to rent within the private sector, as during this time the number of us in social rental accommodation has also dropped.

Founder and CEO of VeriSmart, Jonathan Senior, commented:

“We are currently seeing a shifting mentality in the way we choose to live our lives and for Generation Rent, in particular, there is no longer that urgency to make it out of the rental sector and secure their own ‘piece’ of bricks and mortar.

This was initially driven by consistently buoyant house price growth coupled with stagnant wage growth providing no other option but to rent, however, social rental numbers are falling, Build-to-Rent is growing in prominence, and there has been a number of tenant-friendly changes to the sector.

All of these changes are making the rental sector a more attractive place to be and as a result, we are seeing more of us opt for it and stay there for much longer than we may have traditionally.”

UK – Tenure Type Distribution (%)
Tenure Type
2010
2011
2012
2013
2014
2015
2016
2017
Percentage / Distribution change over a seven-year period
Owner
70
67.9
66.7
64.6
64.4
63.5
63.4
65
-5%
Tenant
30
32.1
33.3
35.4
35.6
36.5
36.6
35
5%
Projection – Owner vs Tenant Occupation (%)
Year
Owner
Tenant
2010
70
30
2017
65
35
2024
60
40
2031
55
45
2038
50
50
2039
49.3
50.7
Tipping Point
2045
45
55

 

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Breaking News

Freehold and Leasehold Reform Act-lessees can control their own destiny

Matthew Pennycock, Minister of State for Housing and Planning, has made a Parliamentary Statement regarding the future progress of the Freehold and Leasehold Reform Act 2024. The Government have formally recognised the “significant complexity of the task” and that the legislation was rushed in at the end of the last parliament and as a result…
Read More →
Rightmove logo
Breaking News

Rightmove’s weekly mortgage tracker 22/11/24

The current average asking price of a typical first-time buyer property is £225,340. For someone taking out an average five-year fixed, 85% LTV mortgage, the average monthly mortgage repayment on this type of home is now £1,104 per month if repaying over 25 years, compared with £1,138 per month a year ago (when the average first-time buyer property asking price was…
Read More →
Estate Agent Talk

The Architecture Of Attention Behind Social Media Addiction

In the digital age, social media platforms have revolutionized how we connect, share, and consume information. Behind their sleek interfaces lies a sophisticated architecture of persuasive technology.  These platforms employ intricate design patterns and technical elements to capture and hold user attention. From subtle visual cues to complex algorithmic systems, every feature serves a calculated…
Read More →
Breaking News

2025 Predictions for the Private Rental Sector

Allison Thompson, National Lettings Managing Director, Leaders Romans Group (LRG) “As we approach 2025, the lettings industry is entering a phase marked by stabilisation and opportunity. Rental inflation has slowed to an average of 3-4% for new lets, reflecting the effects of affordability constraints; renters’ budgets are beginning to limit how much rents can rise.…
Read More →
Breaking News

Response to Matthew Pennycook’s Statement on Leasehold Reform

Yesterday, Secretary of State Matthew Pennycook made a Ministerial Statement on the future of leasehold reform. Responding, Mark Chick, director of ALEP and a Partner at Bishop & Sewell LLP said: ALEP welcomes the ministerial statement which puts in place a timeframe and some objectives for the implementation of the Leasehold & Freehold Reform Act.…
Read More →
Estate Agent Talk

Essential Garage Storage Solutions for Small Spaces

Maximize your garage space with practical storage ideas that keep your items organized and accessible. If you’re dealing with a smaller garage, smart solutions can make a big difference in keeping your space neat and usable. 1.  Wall-Mounted Storage Wall-mounted storage is an excellent way to save space and keep your garage organized, especially in…
Read More →