Generation tenant How Britain has become a nation of renters in just 10 years. Numbers rose from 1.9million tenant households in 2001 to 3.6million in 2011. There are now 51 rental hotspots in Britain compared to eight 10 years ago
The number of people renting homes has soared by a staggering 89 per cent in 10 years as householders struggle to get on the housing ladder, new data has revealed. Figures show a dramatic rise in the number of tenants in England and Wales, from 1.9million households in 2001 to 3.6million in 2011.The rise has lead to a surge in the number of ‘rental hotspots’ emerging across the country. In 2001 there were just eight ‘hotspot’ areas in England and Wales that had between 20 and 40 per cent of homes rented out, but by 2011 this had climbed to 51 areas. Experts say the phenomenon – dubbed ‘Generation Rent’ – is down to the battle many face to raise enough money for a house deposit, and the older generation being forced to release capital from their own homes to pay for their care in later life.
Many of the hotspots tend to be university cities or major business hubs, but more unusual hotspots include Torquay in Torbay, Eastbourne and Hastings.Others include Blackpool, Liverpool and Salford in the North West, Nottingham and Leicester in the Midlands and Oxford and Reading in the South East. Housing experts believe that although home-ownership will remain constant, more people will have to rent for longer as it becomes increasingly difficult to raise a deposit. Stephanie McMahon, Head of Research for Strutt & Parker said: ‘The private rental sector has changed dramatically over the past decade, and although this brings us more in line with our northern European peers we are still some way off the scale of the rental sector in countries like Germany and Switzerland. ‘In our view it is likely that overall home ownership will remain between 60 and 70 per cent over people’s lifetimes, but we will see much more openness to rental at different life stages and for longer time periods.’ She added: ‘It is widely acknowledged that long-term rental is increasingly common, driven by factors such as whether the younger generation are able to raise deposits to buy, or indeed the older generation releasing capital from their homes for care and pensions.
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