Rent versus ownership reaches tipping point

New figures published by the Office for National Statistics in its Economic Review show that people aged 25-29 are now more likely to rent privately (43.3 per cent) than own a home with mortgage (39 per cent).

This tipping point in home ownership across the UK marks a dramatic change from just 15 years ago, when people in their late 20s were more than twice as likely to own (56.5 per cent) rather than rent privately (21.4 per cent).

Commenting on the figures Laura Gardiner, senior policy analyst at the Resolution Foundation, said: “We’ve reached a tipping point in the UK housing market where young people are now more likely to rent privately than own their home.

“This dramatic shift from owning to renting has major consequences for young people and future generations. For many people, it brings major insecurity in terms of their housing costs and being able to find a secure long-term home.

“Ultimately it also means the nation’s wealth will become increasingly concentrated amongst a smaller pool of home-owners, with serious implications for social mobility.”