This week’s blog is a mini post – just a quick filler for your property fact needs! So, without further ado, let’s get into the shift in property ownership trends over the last 100 years or so.
The UK property market has seen significant changes over the last century. Over this time, there have prevailed some distinct trends among owner-occupied properties and both private and socially rented homes.
In 1918, the UK market was dominated by private renters, making up 75% of all households. At the time there was only 25% of the population who owned their own home. Over the coming decade, homeownership gradually increased, reaching 38% in 1958. This shift was then accompanied by a decrease in private renting, which fell to a low of 41% in the same period.
The most significant growth in homeownership occurred between 1958-2003. During this time, the % of ownership went up from 37% to 70%. This period also saw a corresponding decline in both private renting and social renting, declining to 8% and 22% respectively.
Interestingly, the trend for private renting was reversed around the time of the global financial crisis (2008/09). This led to a 2% growth in private renting between 2003-2008. This growth trend has continued as the population has expanded and has now reached 20% in 2023. The resurgence in the private rented sector can be attributed to not only the increase in population causing a larger demand for housing but also relative affordability and government policy shifts.
Meanwhile, the social renting sector has seen a gradual decline since its peak in the late 1970’s. Over the recent years, this figure has stood around the 18% mark, compared to the 29% seen in 1978.
To summarise, the UK property market has evolved significantly over the last century. The initial dominance of private renting has given way to an increase in homeownership, although recent years have seen renewed growth in the private rental market.
As a local property agent here in Bath, it is important that we recognise how these trends impact homeowners, renters and landlords alike. Understanding these trends allows us to help make informed decisions on the current landscape and provide the best advice possible. So, if you want to find out more then get in touch with our team! We are always happy to help you find your new home!
