Blog 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.