Nearly one in three households in the capital are renting privately
The number of people aged 55 to 64 renting over the past 10 years surged by 80%, a new analysis of the private rented sector has revealed.
According to a report from The Mortgage Works (TMW), which offers a snapshot of the private rented sector, high house prices and rising mortgage costs have driven nearly one in three (30%) households in London to rent privately, almost double the rate in the rest of England.
By contrast, there has been a continuous decline in homeownership rates among the 55 to 64 age group, now about 10% lower than its 2007 peak.
The TMW Private Rented Sector Report also showed that the proportion of landlords owning five or more properties has tripled from 5% in 2010 to 18% in 2021. These landlords now control nearly half of all tenancies.
With approximately 350,000 buy-to-let fixed rate mortgages set to mature in the next year, refinancing could lead to payment increases of around £225 per month, potentially affecting rental market dynamics.
Data from the Office for National Statistics shows unprecedented annual rental growth in recent years, with some regions experiencing double-digit increases, highlighting the high demand for rentals amid a dwindling supply and challenges for prospective first-time buyers.
“Understanding the dynamics of the private rented sector has never been so important,” said Damian Thompson (pictured), director of landlord at The Mortgage Works. “The sector continues to support the lives of millions of people across the UK by providing homes for those who either can’t afford to buy or prefer not to own a home.
“We look forward to understanding the new government’s plans to create a stronger, fairer private rented sector, where legislation works for both landlords and tenants.
“The Mortgage Works report provides in-depth market analysis that will help identify trends and the critical areas we must collectively address if we are to make a difference.”
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