The private rented sector is set to continue to remain popular within the UK, with an estimated additional 200,000 households renting every year.

Summary:

• The number of households who rent in the UK has increased by 135% since 1985
• Over 70% of households aged between 16-24 now live within the PRS
• UK property investment has outperformed other assets, increasing in value three times more than that of gold

The private rental sector could expand to include 40% of households.

Within the next five years, the UK population is likely to be split into those who rent and those who own multiple properties, according to research by lettings agent Martin & Co.

The popularity of the PRS has seen the number of households renting grow by 135% since 1985. However, there have been much more dramatic changes to the demographics of letting, with a 346% increase in the number of households aged between 35 and 44 in the sector over the past three decades.

Now 71% of households aged between 16 and 24 live in a privately rented home, up from 32% in 1986. It is a trend that is set to continue, with 200,000 new households entering the sector on a yearly basis.

According to the report, the sector has experienced the strongest momentum over the past 10 years, with over two million new households entering the PRS across England alone in 2012. The number of private rented properties overtook the social housing sector the same year.

Young professionals have a growing preference to rent, as the flexibility offered suits their lifestyle.

PRS has also steadily outperformed rival assets over the past 30 years. Residential property has grown 768% in the last 30 years, three times that of gold and twice that of shares in FTSE 100 companies.

Source: Select Property