UK Economy Predicted to Push 1 in 4 Families into PRS by 2025

18 June 2012 Categories: News

UK Economy Predicted to Push 1 in 4 Families into PRS by 2025

According to a report compiled by the Resolution Foundation, in conjunction with Shelter, more than 22% of families will be privately renting by 2025, while only 27% will be mortgaged home owners. These figures differ greatly from those of 1995 – which showed 7% of the population in private rental accommodation and 47% as mortgaged homeowners – and are being blamed on the worsening UK economy and the inability of the younger generation to secure homeowner mortgages.

The predictions made in the report have prompted the Resolution Foundation and members of Shelter to issue a warning to the government that ignoring the problem of private housing will ultimately end in disaster.

Mr Campbell Robb, chief executive of Shelter commented on the findings saying, “This report shows what is fast becoming the new reality of our housing market in the current economic climate: home ownership continuing to fall while renting becomes a way of life for British families.

“Yet despite the growing pressure on the rental market, the government’s recent Housing Strategy virtually ignored the sector and did little to address the issues of affordability, stability and quality that so many renters face.”

Although worrying for the government this new report has been taken as positive news by many buy to let investors, and shows great potential for long term investment in the market.