PI Global Investments
Finance

Children ‘more likely than working-age adults to live in private rented sector’


Children are more likely than working-age adults to live in Britain’s private rented sector, as young families who may find themselves priced out of homeownership rent for longer, according to a think-tank.

The number of children living in the private rented sector (PRS) has nearly tripled over the last quarter of a century, from 1.1 million children in 2000-01 to 3.2 million in 2024-25, the Resolution Foundation said.

It said children are now more likely than working-age adults to live in the private rented sector, at 23% compared with 22%.

Britain’s private rented sector has more than doubled in size since the turn of the century, the foundation said.

Some 12.9 million people, living in 5.1 million households, now call it home, compared with 5.1 million people, in 2.5 million households, in 2000-01.

As the number of private renters has changed, so too have the characteristics of tenants, the research found.

Although those in their 20s are still the most likely age group to be private tenants (37% in 2024-25), the share of people aged in their 30s in this tenure has nearly trebled, from 10% to 28% between 2000-01 and 2024-25.

The foundation said that a lack of security for young families in particular underlines why the rights enshrined in the Renters’ Rights Act 2025, which recently came into force in England, are needed.

The Act signals the end of Section 21 “no fault” evictions, meaning private landlords will not be able to evict tenants without a valid justification.

Landlords must also reasonably consider renters’ requests to live with a pet.

Tenants are also able to challenge unfair rent hikes.

The foundation’s work focuses particularly on households with low and middle incomes, those on low pay or in precarious work, and those who are vulnerable to financial shocks.

It said that, on average, private renters in the UK spend around 35% of their income on housing costs, above the 30% threshold generally considered affordable.

The report said: “The impact that rent has on disposable income is particularly severe for those on lower incomes who receive help towards their rent through the benefit system.”

Hannah Aldridge, a senior research and policy analyst at the Resolution Foundation, said: “For a growing number of people, the private rented sector is less a pitstop on the way to home ownership or a social tenancy, and more a permanent home.

“Children are now more likely to live in private rented homes than working-age adults, and the number of private renters in their 30s has soared as young families are priced out of homeownership.

“Yet private rented accommodation is more likely to be damp and energy inefficient than other tenures, and many vulnerable private renters report feeling so insecure in their homes they are unable to make long-term decisions.

“The Renters’ Rights Act will alleviate some of these concerns by setting minimum property standards and offering more security.”

A Ministry of Housing, Communities and Local Government spokesperson said: “The Renters’ Rights Act brings the biggest reforms to renting in over 40 years, with significant protections now in force to support renting families.

“We are also restoring the dream of home ownership through a record £39 billion investment in social and affordable housing – building the homes this country needs and making them more affordable by boosting supply.”



Source link

Related posts

How I invest: The personal finance geek chasing a comfortable early retirement

D.William

SNP minister says party would cut income tax if re-elected

D.William

Three quirks to consider with the new $3m Division 296 superannuation tax

D.William

Leave a Comment