More people expected to rent than buy by 2025
Mon 27 Jul 2015
By 2025 there may be slightly more people renting privately in the UK than owning with a mortgage, according to new research, with average prices rising to £360,000 by 2020. There will also be a greater number of older people than ever before owning their own home outright, amounting to almost 35% of all households, says PriceWaterhouseCoopers.
Overall the total UK owner occupation rate is projected to fall from a peak of nearly 70% before the financial crisis to around 60% of households by 2025 and house price growth is projected to moderate to around 5% per annum. Recent price rises have meant that the number of households in the private rented sector has more than doubled since 2001.
This trend is especially strong in the 20 to 39 so called generation rent age group where more than half will be renting privately by 2025, according to PWC's latest UK Economic Outlook report.
House price growth has moderated since last summer, particularly in London. However continued lack of supply means that medium term UK house price growth is projected to average just over 5% per annum until 2020.
January 2015View older stories >
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