So… lets it break it down.
The UK housing market comprised roughly 28.1 million residential properties in 2014. Moreover the UK has typically been an owner occupier market peaking with 70.9% of the market being owner occupiers in 2003 but this number has been steadily decreasing.
In March 2017 the 2015/16 Housing Survey was released with some interesting results. This is a government document from the glamorously titled Department for Communities and Local Government (DCLG for short).
Well… get to the point then – what did it say?
The UK is still dominated by owner occupiers but the numbers of those in the Private Rented Sector (PRS) has increased to a 46% market share up from just 24% 10 years ago, with most of the younger generation choosing to set up household within this sector of the housing market. The surprising trend however is that despite preconceptions, those renting from private landlords are choosing to stay longer in one place, with the average tenancy length being 4.3 years. This trend, contrariwise to the young and restless perception, tells us a little more about satisfaction levels for those living in different types of accommodation.
According to the report, private tenants are seemingly more satisfied than social renters but the ambition to buy still remains strong. This is hardly ground breaking when, according to the statistics, owner occupiers are demonstrably happier. Of the overall percentage of renters, 59% of them hope to buy in the future - equivalent to 2.6 million households – but 42% of people currently renting in the PRS think it will take them 5 years or more to make the transition from renting to buying.
There are a multitude of reasons for the increase in renters in the UK but at least the statistics demonstrate some positive signs of stable households and life satisfaction despite the negativity often represented in the press. Nevertheless, the aspiration to buy remains strong but for now the typecast nomads are staying put whether this is in rented accommodation or not.
Check out the figures for yourself from the following articles: