Recession could push 22% of population into private rented sector
Only one quarter of households will be home owners with a mortgage by 2025 if the economy continues to stagnate, while record numbers – 22% of the population – will be living in the private rented sector.
The forecasts are in a report commissioned by the Resolution Foundation and Shelter from Cambridge University.
It looks at how the housing market will change if current economic trends continue. Such trends include low levels of house building, constrained mortgage finance and low income growth – and the combination would mean that only 27% of households would be mortgaged home owners by 2025, compared with a peak of 43% in the early ’90s.
Meanwhile, the proportion of people renting their homes privately will continue to expand, rising from just 7% in 1994 to 22% by 2025. In London, more than a third (36%) of households will be renting by 2025, says the report.
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