Private renting is growing in popularity

Private renting is growing in popularity according the Department for Communities and Local Government: From 1993 to 2005, the proportion of household reference persons aged 25 to 29 who were private renters rose from 19% to 34%.

Over the same period the proportion that were owner occupiers fell from 60% to 50%, the Housing in England 2004-05 report published this week said.

The type of tenure varies considerably by age. In 2004-05, 51% of household reference persons (HRPs) aged 16-24 were private renters and 30% were social renters.

Seventy-nine percent of HRPs aged 45-64 were owner occupiers and 77% of HRPs aged over 65 owned their own home outright, while 23% were social renters.

The annual survey of nearly 20,000 households was carried out for the DCLG by the National Centre for Social Research and provides key housing data on owner occupation and on the social and private rented sectors.

Other snippets from the report:

In 2004-05, there were 14.6 million (71%) owner-occupying households, 3.7m (18%) social renters and 2.4m (12%) private renters.
The mix of tenures in London differs noticeably from the rest of England. Owner occupation in London was only 58% (England 71%), social renting 25% (England 18%) and private renting 17% (England 12%).
Home ownership:

Fifty-seven percent of homeowners were buying their home with a mortgage.
43% owned their home outright, of whom 12% had bought their home outright at the outset
28% had bought with a mortgage but had since paid it off; and
3% had acquired their home through other means (e.g. inheritance).
First-time buyers:

Of the 5.5 million first-time owners, 1.1 million had purchased their home since 2001.
43% of recent FTBs were previously private renters
6% were previously social renters
33% were newly formed households and 17% were previously sitting tenants
70% of recent first-time buyers were under 35.
Recently moved households:

2.3 million households moved into private accommodation in the 12-month period prior to 2004-05.
419,000 of these (19% of the total) were newly-formed households - of whom:
210,000 moved into private renting, 91,000 into social renting and 119,000 into owner occupation.
Movers out of owner occupation:

Of existing households, an estimated 382 thousand reported having left owner-occupation in the three years prior to interview. Of these, about two-thirds moved to the private rented sector and one-third to the social sector.
The main reasons cited for having left home ownership were divorce or separation, other personal reasons and job-related reasons.
Second homes:

It is estimated there are 255,000 households with second homes in England,
34,000 with second homes in Wales or Scotland and,
193,000 with second homes outside GB.
Overseas, Spain is the most popular country with 34% of second homes, followed by France with 23%.