A report commissioned by the Resolution Foundation and Shelter has projected that an increasing number of families with children will have little choice but to rent property in the future rather than buy.
The report which looked at how the housing market will change if current economic trends continue, predicts that more families with children will be renting than ever before. The past five years have seen a massive 86 per cent increase in families with children renting their homes, growth which looks set to continue – particularly in London where renting will overtake mortgaged home-ownership among families by 2020.
It found that while Britain’s economy remains weak the proportion of households owning with a mortgage will decrease to one in four (27 per cent) by 2025, down from a peak of 43 per cent in the early 90s. Meanwhile, the proportion of people renting their homes privately will continue to expand, rising from just 7 per cent in 1994 to 22 per cent by 2025. In London more than a third (36 per cent) of households will be renting by 2025.
With renting set to become the norm for more and more people, Shelter and Resolution Foundation are warning that the government can no longer afford to ignore a sector which growing numbers will call home.
Shelter’s chief executive Campbell Robb says: “This report shows what is fast becoming the new reality of our housing market in the current economic climate: home ownership continuing to fall while renting becomes a way of life for British families.”
“Yet despite the growing pressure on the rental market, the government’s recent Housing Strategy virtually ignored the sector and did little to address the issues of affordability, stability and quality that so many renters face.”
“It’s time government woke up to the fact that Rental Britain is here to stay. With more and more families renting than ever before, we need to make renting fit for purpose for the growing cohort who want a stable and secure home to raise their children in.”