Private Rented Sector Report - Summer 2024

 

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New analysis, backed by data, provides a snapshot of the private rented sector which is integral to the UK housing market. This report identifies emerging trends and critical areas to collectively address driving change and creating a stronger, fairer sector for all.

The report has been developed by our experts and showcases several key findings:

  • Dramatic shift in the number of people renting aged between 55-64: The report shows an 80% surge in private rentals over the past decade for this age group. This trend is in contrast to the continuous drop-in homeownership rates amongst 55–64-year-olds, which is now c.10% lower than its 2007 peak.
  • London led the rise in private renting across England: Due to high house prices (and more recently, higher mortgage costs), close to one in three (30%) households are opting to rent privately in the capital, nearly double the rest of England.
  • Rapid growth in (professional) landlords: The proportion of landlords owning five or more properties has more than tripled from 5% in 2010 to 18% in 2021. These landlords wield substantial influence, commanding almost half of all tenancies.
  • Impending interest rate impact: With around 350,000 buy to let fixed-rate mortgages set to mature in the next year, those refinancing face potential payment shocks of around £225 per month, potentially impacting rental market dynamics.
  • Office for National Statistics (ONS) data reveals unprecedented annual rental growth in recent years: Growth reached double digits in some regions, underscoring the high demand for rentals amid dwindling supply and barriers to prospective first-time buyers.

Download the full report here