40% jump in people renting homes - Property, House & Home - The Independent

40% jump in people renting homes - Property, House & Home - The Independent

The number of people renting a home has soared by 40% during the past five years as low levels of house building and the mortgage drought have prevented potential buyers from getting on to the property ladder.

At the same time the number of people who owned their own home fell from a peak of 14.8 million in 2005 and 2006 to 14.5 million.


The increase in people living in private rented homes was particularly marked from 2007 onwards, with the percentage of households in this position jumping from 12.7% to 15.6%.


The rise in people renting is likely to have been largely caused by the credit crunch, which has led to steep falls in mortgage lending as banks and building societies tightened their criteria.


The large deposits now being demanded by lenders has led to a steep fall in the number of first-time buyers, with just 196,700 people getting on to the property ladder in 2009, less than half the 402,800 people who bought their first home in 2006.