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Blog Rise and rise of private rental sector - More renting than mortgaged households by 2025



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Rise and rise of private rental sector - More renting than mortgaged households by 2025

 

A major cultural shift in home ownership is on the horizon, with more private renters than mortgaged home owners within just a few years.

 

By 2025, the number of mortgaged households will be just under 6 million, while the number of households in private rental accommodation will be a whisker more, at 6 million.

 

The forecast comes from NatWest senior economist Sebastian Burnside, who says the cross-over will happen in late 2024.

 

He said: “We think it’s a fairly comfortable bet that by 2025 we will have more households renting privately than owning their homes with a mortgage, which is a big cultural shift for a country like the UK and something that’s being driven by those underlying demographics.”

 

There are already more people owning a home outright than people buying with a mortgage, and the number of outright home owners will continue to climb.

 

Since 2013, outright home ownership has been the biggest form of housing tenure in the UK. By 2024, about 9 million households will own their homes outright.

 

The number of households in social rental accommodation will edge downwards, from 4 million today to just under that figure.

 

Burnside said that fewer people are taking out mortgages because of the differences between their incomes and house prices.