We have seen a tenure shift towards private renting; the size of private rented sector has been increasing rapidly since the early 1990’s. There are currently 4.14m people renting privately in England.
According to the 2011 Census, the biggest groups of renters (33%) are aged between 25 and 34, closely followed by those ages between 35 and 44 which account for 24% of those renting privately.
The older renters are the fastest growing segment, which suggests that people are renting for longer.
Reasons for renting:
Lifestyle choice: Tenants enjoy renting as it is less hassle and they like the flexibility, some people state that they are renting because they chose to invest their money elsewhere.
Cannot buy: Some tenants are being affected by the housing market therefore cannot afford to buy. The combination of high house prices and lenders’ deposit requirements, means that they average first-time buyer has to save a deposit equal to nine months of income.
Among older private renters, failing to meet the mortgage criteria is almost as important as the inability to save a sufficient deposit.
Difficulties raising a mortgage deposit are cited as the main reason for renting across all age groups.