The demand for privately rented homes continues to grow. The official household projections show the creation of 1.2 million new households over the next five years. According to Knight Frank’s Tenure Distribution Model, the number of new households in the private rented sector over this period is an estimated 595,517.
Young professionals (aged 25 to 34) no longer make up the largest group living in the private rented sector, having been overtaken, albeit marginally, by 35 to 49 year olds. This age-group is also expected to show the biggest growth in households in the private rented sector over the coming years, with difficulty in obtaining a mortgage deposit to buy a home remaining the hurdle.
Demand is growing among all age groups and income profiles, with a myriad of reasons for renting, as examined in the survey. There is also continuation of demand at the economic end of the rented scale, with households living in the private rented sector to be augmented by the increased provision of co-living, and an increase in over-65 renters, especially in purpose built rental senior living housing.