- Numbers rose from 1.9million tenant households in 2001 to 3.6million in 2011
- There are now 51 rental hotspots in Britain compared to eight 10 years ago
- Popular areas with tenants now include Torquay, Hastings and Norwich
- Bournemouth is the largest rental hotspot outside of London
The number of people renting homes has soared by a staggering 89 per cent in 10 years as householders struggle to get on the housing ladder, new data has revealed.
Figures show a dramatic rise in the number of tenants in England and Wales, from 1.9million households in 2001 to 3.6million in 2011.
The rise has lead to a surge in the number of ‘rental hotspots’ emerging across the country.
In 2001 there were just eight ‘hotspot’ areas in England and Wales that had between 20 and 40 per cent of homes rented out, but by 2011 this had climbed to 51 areas.
Changing times: The rental picture looked dramatically different in 2001 with large swatches of people in Wales, Devon and Cornwall and parts of the North renting properties ten years agoExperts say the phenomenon – dubbed ‘Generation Rent’ – is down to the battle many face to raise enough money for a house deposit, and the older generation being forced to release capital from their own homes to pay for their care in later life.
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Traditionally, London has always been the area where large numbers of people choose to rent, due to the spiraling cost of buying.
However the new data shows that in the past decade this has expanded to include large pockets of the South, East and North. Now only a few small areas of the country have little or no properties lived in by tenants.
Hotspot: Many of the renting hotspots tend to be university cities or major business hubs, but more unusual hotspots include Torbay, (pictured) Eastbourne and Hastings where landlords are cashing in
Many of the hotspots tend to be university cities or major business hubs, but more unusual hotspots include Torquay in Torbay, Eastbourne and Hastings.
Others include Blackpool, Liverpool and Salford in the North West, Nottingham and Leicester in the Midlands and Oxford and Reading in the South East.
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2. Brighton and Hove
The South East is also popular with many seaside towns seeing rising numbers of rental properties.
Ten years ago, the picture was radically different and rental hotspots were centred on large parts of Devon and Cornwall, London and the west of Wales.
Housing experts believe that although home-ownership will remain constant, more people will have to rent for longer as it becomes increasingly difficult to raise a deposit.
Stephanie McMahon, Head of Research for Strutt & Parker said: ‘The private rental sector has changed dramatically over the past decade, and although this brings us more in line with our northern European peers we are still some way off the scale of the rental sector in countries like Germany and Switzerland.
‘In our view it is likely that overall home ownership will remain between 60 and 70 per cent over people’s lifetimes, but we will see much more openness to rental at different life stages and for longer time periods.’
She added: ‘It is widely acknowledged that long-term rental is increasingly common, driven by factors such as whether the younger generation are able to raise deposits to buy, or indeed the older generation releasing capital from their homes for care and pensions.
‘The varied growth of this market across the UK clearly points to a need to understand local markets rather than just the big picture.’
Within London, a number of boroughs have seen an increase in the number of rented properties, such as Barking and Dagenham, which has seen an increase of 230 per cent in 10 years, and Tower Hamlets, which has seen a rise of more than 150 per cent.
Traditionally established areas in prime central London such as Hammersmith and Fulham as well as Kensington and Chelsea have also seen increases of between 30 and 60 per cent.
Ms McMahon said: ‘It is widely acknowledged that long-term renting is now immensely common for the younger generation and even more affluent older generations are exploring this different lifestyle option and seeing how much more they can get for their money in rental rather than committing to buying.’