The rise of generation rent over the past few years has been no secret. With the changing lifestyles of young people in the UK, a growing number are now happier to rent than buy a home.
This reality has seen the number of homeowners in the UK fall consistently over the course of a number of years, now sitting at an all-time low of some 62 per cent. However, this is set to continue on the current trend for years to come, and according to one prediction, the next decade will see the volume of people renting exceed the number who actually own their own property.
PricewaterhouseCoopers said that between 2001 and 2015, the number of people who are looking to rent has doubled. And it added that in the next ten years, the continued positives that have been in evidence for those preferring to rent, coupled with continued house price rises, will mean even more people moving towards the private rented sector.
Over the next five years, the company expects the average price of buying a home to stay at a consistent five per cent per annum. This will mean that a house now worth an average of £279,000 will have increased in value to around £360,000 by the end of 2020. This alone could push a lot more people towards the rented sector.
Looking at the predictions, PwC said that between 2001 and this year, the number of homeowners in the UK fell from ten million to 8.1 million. It expects this to decline further in the next decade, dropping to somewhere in the region of 7.2 million as more people look to rent a home.
In addition to this, the company said that the number of people renting is expected to climb by another 1.8 million in the next ten years, which would take the number of private tenants slightly higher than the number of homeowners.
This is fantastic news for property investors, who can rest assured that their portfolio will benefit from high demand from tenants for at least a decade, giving a strong potential for real returns in the property market.