Private Rented Sector forecast to grow by 24% by 2021

Private Rented Sector forecast to grow by 24% by 2021

The number of households in the private rented sector (PRS) is forecast to grow by 24% over the next four years, meaning one in four will be renting rather than owning their home.

The PRS has already doubled over the last ten years and is expected to continue its growth to 5.79 million households with 68% of current tenants expecting to still live in rental accommodation in three years, Knight Frank’s latest tenant survey has revealed.

Private Rented Sector tenants could be happier

The report explains that the growth of the sector comes from the changing conditions in both the housing and labour markets. Especially younger workers pointed out that the actively choose to live in rental accommodation as it means they can move around for work more easily.

Furthermore, the report also explains that rising house prices are putting some constraints on those tenants who are intending to own their home, leading them to a longer stay in the PRS whilst they’re saving for a deposit.

One of the biggest members of the PRS is the build-to-rent sector, which is constantly growing. This sector incorporates professionally managed rental accommodation in purpose built blocks. The market has only emerged over recent years but has been growing strongly since and has now an estimated worth of £25 billion.

The report also looked into the sector’s most common tenants. Couples living without children make up the biggest group, followed by those living on their own. Together, these households account for 59% of the PRS.

About 25% of households are families with children and 12% are made out of sharers, a number that increases to 26% when only looking at the capital.

The continuing rise of Generation Rent and its best friend: the Private Rented Sector

According to the Knight Frank survey, 37% of renters do so out of choice. When asked why, they named reasons such as the flexibility of renting, not having to carry the responsibility of owning or living in an area they could otherwise not afford to live in.

Dr Diana Babacic, of the PRS Research Consultancy, commented the results:

“We expect the demand for privately rented properties will continue to grow. Official household projections show 1.14 million new households being created between 2016 and 2021.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT