All regions of the UK will see falling owner-occupation levels and more private renting over the next decade, with particular rises in London, Scotland, the north of England and Northern Ireland.
This prediction, from business consultancy PwC, says the biggest and fastest increase will be in London.
In 2000, almost 60 per cent of Londoners owned the home they lived in, with around 40 per cent renting from either private landlords or the social sector. New analysis from PwC shows that by 2025 this could be reversed, with only around 40 per cent owning their home, and around 60 per cent renting, mostly from private landlords.
“High prices are making homes in the capital unaffordable to most and could undo a century long trend towards rising home ownership rates - in just 25 years the city has been transformed to one where rental is becoming the norm, especially for younger people” says a PwC spokesman.
Northern Ireland will also experience high growth in private renting, reaching over 25 per cent by 2025. This is driven by relatively low levels of housebuilding and more youthful demographics than in other regions.
Scotland and the northern regions of England are expected to see faster growth in private rentals than the south of England - excluding London - as these areas are starting from a lower base level.
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