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Buy to let is here to stay and even more families will have to rent if the economy does not improve, says new research.
The number of private renters is expected to jump from 18% to 22% by 2025 – up from 7% in 1994 – reports a study from the Resolution Foundation for housing charity Shelter.
The findings show the biggest increase in families renting was in the three years 2007 – 2010, when numbers doubled.
Shelter reckons renting will overtake family mortgaged home ownership in London by 2020.
Shelter’s chief executive Campbell Robb said: “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.”
Meanwhile, the findings of a separate study shows half of adults believe they won’t own their home during their lifetime.
The study, from self storage firm Safestore also revealed more than 40% consider they would only become homeowners if they inherited money or a house.
Only 5% were optimistic about the housing market, up a quarter on the 4% who were ‘optimistic’ in the last survey in November 2011.
Lack of deposit (29%) and lack of mortgage availability (17%) were blamed the most for keeping buyers off the housing ladder.
“At a time when people are continuing to struggle to make their first step onto the property ladder, we are seeing more and more people moving into rented accommodation,” said Peter Gowers, chief executive at Safestore.
“The results show a large proportion of the population is resigned to never owning their own home and believing that their best hope of ownership is through inheritance.”
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