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Owner Occupier Levels Set to Decline as Millennials Focus on Private Rental Sector

The number of people who will own their own homes is set to decline in the coming decade, as attitudes amongst millennials towards renting property change according to a new report.

UK Rental Market Growth

The number of people who will own their own homes is set to decline in the coming decade, as attitudes amongst millennials towards renting property change according to a new report.

Research from Experian has found that owner occupier levels in the UK are set to fall to just 60% by 2026, as more Britons turn towards the UK’s rental market due to the increasingly competitive housing market and ever rising property costs.


Of the 1,500 private renters from across the UK who were surveyed, more than 33% stated that they had no intention of purchasing a property within the next five years, with 26% of respondents also disagreeing with the perception that living in the rental market was a waste of their funds.


The response indicates a shift in opinion within the market, as more tenants elect to be a part of the rental market, instead of using the rental market until they are able to step onto the property ladder.


As millennials, those currently aged in their 20’s, enter the housing market, many are renting with the expectation that they will never own their own property.


PrinvestUK’s managing director Aaron Campbell said: ‘The change in attitude amongst Britain’s younger generation of renters has been felt throughout the market. Many of the residential property developments that we have sold in the past year have been tenanted by young professionals entering the property market.’


‘They are looking for excellent town and city centre locations, competitive rental figures and modern apartments, rather than focusing on investing in their own property purchase.’


Current projections from PWC indicate that an additional 1.8 million properties will be entering the UK’s private rented sector over the next decade, with more than half of those in the sector being tenanted by 20 – 39 year olds.


PWC also indicated that by 2025, property ownership levels will fall below the numbers of those renting as the housing shortage is set to continue into the next 10 years.

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