Percentage of households buying a home with a mortgage declined for almost every demographic since 2006
The results of the annual Family Resources Survey, published by the Department for Work and Pensions, have revealed that the percentage of households renting privately has increased across almost every demographic.
Between 2006/07 and 2016/17, the number of households living in private rented property increased from 13% to 20%, whilst the proportion of households buying a property with a mortgage decreased from 37% to 28%.
Younger households in particular saw a marked rise in renting privately over the same ten-year period, the survey found, with the number of 16 to 24-year olds renting growing from 55% to 73%.
The percentage of households aged 25-34 similarly increased from 28% to 46%, whilst the number of privately renting households aged 35-44 doubled in the ten years from 13% to 26%.
The survey also notes that there were more people aged 44-54 renting privately in the same period, having grown from 8% to 14%.
Conversely, the percentage of households buying a home with a mortgage fell for almost every age group, again most notably amongst younger age brackets.
For example, the proportion of 16 to 24-year olds buying with a mortgage decreased by more than half from 18% to 7%, and declined from 52% to 33% for those aged 25-34.
Only the 65+ age bracket recorded no change in buying with a mortgage or renting privately.
David Smith, Property Director of the Residential Landlords Association (RLA) believes the variation in tenant demographics demonstrates the necessity for change:
“The government is increasingly asking the private rented sector to house people in categories that it was never intended or structured to do.
“Ministers need to undertake a comprehensive review to ensure the support is in place for landlords to meet the changes in the types of tenants in rented housing.”
The survey follows the latest lettings index by Hamptons International, which reports the supply of rental homes in Britain has declined by 5% since the introduction of the stamp duty surcharge in April 2016.