Families Make Up A Third Of UK Rental Market

Families now make up one third of the rental market as homeownership grows increasingly out of reach, new analysis reveals.

There are more than 1.5million households with children in the rental sector – a 121% increase since 2004, according to specialist lender Perenna.

This means in the last two decades some 834,000 more families have been forced to privately rent as taking the first step on to the property ladder becomes an untenable dream, the analysis of official Office for National Statistics data reveals.

House prices have spiralled upwards in the past decade and have now reached their highest ever sold price - £300,000 on average – according to lender Halifax.

This means an average first-time buyer would need to raise a £30,000 deposit. And as rental payments are still high, many households are finding it increasingly harder to save that 10% pot.

It means hopeful first time buyers are having to wait longer before snapping up a starter home, and may even have started a family by this time.

Renting is often seen as more unstable than homeownership due to high monthly payments, the possibility of eviction and more regular home moves. Plus, it means monthly payments are not building equity in a property.

But families have been forced to disproportionately rely on rental homes compared with those without children, the data shows.

While the rise in the number of households with children grew by just 1% over this period, the proportion in rental accommodation soared by 121%.

This is compared to a 99% increase in the number of households with no children in rented homes.