Homeownership has fallen to its lowest level in 30 years across the UK, with the private rented sector experiencing significant growth, particularly in Manchester.
- Levels of renting in Manchester have more than trebled in the last 12 years, rising from 6% to 20%
- Only 58% of households in Greater Manchester are now owner-occupier, in comparison to the peak of 72% seen in 2003
- Homeownership across the UK has fallen to its lowest level in 30 years
The number of households renting in Greater Manchester has more than trebled since 2003, from 6% to 20%.
A report, based on analysis of the latest Labour Force Survey, showed that in early 2016 only 58% of households in Greater Manchester were homeowners, compared with a peak of 72% in 2003.
In comparison, across England levels of private renting almost doubled from 11% in 2003 to 19% in 2015
Home ownership across England reached a peak in April 2003, when 71% of households owned their home, either outright or with a mortgage, but by February this year the figure had fallen to 64%, the Resolution Foundation said.
Despite affordability being a factor towards an increasing number calling the private rented sector their home, for some renting is a lifestyle choice.
Renting has become the norm for an entire generation. Those aged 20 to 39-years-old, Generation Y, choose to rent over buying their own home as it offers greater flexibility and less commitment than a mortgage.
With the number of people turning to the PRS continuing to increase, there is a greater demand for purpose-built accommodation, particularly in Manchester. Many properties currently on the market are not designed with the modern tenant in mind.
Build-to-rent, a sector estimated to be worth £50 billion by 2020 according to Knight Frank, provides tenants with the facilities and space they require on a day-to-day basis. Manchester, a city in need of an increase of suitable rental accommodation, is primed to benefit the most from build-to-rent, offering investors reliably attractive yields and tenants accommodation fit for purpose.