Is Long-Term Renting Becoming the Norm in the U.K

Renting in the UK

Over the past decade, the UK housing market has undergone seismic shifts. Once characterised by a culture in which homeownership was considered the ultimate goal, there is growing evidence that long-term renting is emerging not just as a temporary solution, but as a more permanent way of life for many. With soaring house prices, changing social attitudes, and evolving economic realities, the notion that “buying a home is the only path to stability” is increasingly being questioned. But is long-term renting genuinely becoming normal, or is it still a fallback for those priced out of the property market?

The Historical Context of Homeownership in the UK

Homeownership has long been a central pillar of the British dream. In the post-war era, government policies, low interest rates, and rising wages facilitated a boom in homeownership. By the early 2000s, roughly 70% of households owned their own homes, and renting, particularly in the private sector, was often seen as a temporary measure, typically for young people or those in transitional life stages.

However, over the last two decades, economic pressures have begun to erode this paradigm. House price inflation has outpaced wage growth, leaving many young people unable to save for a deposit. According to the Office for National Statistics (ONS), the average house price in England and Wales in 2024 was £298,000, while the average full-time salary was just £34,000. The disparity between wages and house prices is particularly acute in London and the South East, where house prices average around £530,000.

This affordability gap has profound implications for homeownership rates. Data from the Resolution Foundation indicates that while older generations are more likely to own their homes outright, millennials and Gen Z face unprecedented barriers to buying. Consequently, renting—particularly long-term renting—is no longer simply a stepping stone but a potential lifestyle choice.

The Rise of the Private Rented Sector

One of the clearest indicators of long-term renting becoming normal is the growth of the private rented sector (PRS). In 2000, only 8% of households rented privately; by 2023, this figure had risen to approximately 19%, with some projections suggesting it could reach 25% by the end of the decade.

This growth has been driven by multiple factors:

• Affordability Constraints – Deposits, stamp duty, and rising interest rates make homeownership unattainable for many first-time buyers.

• Labour Market Flexibility – Millennials and Gen Z often move cities for career opportunities. Renting provides the mobility necessary to adapt to a fluid job market.

• Lifestyle Choices – Some individuals prioritise experiences over property ownership. The flexibility of renting allows for easier relocation, less maintenance responsibility, and fewer long-term financial commitments.

Research from Shelter, the UK housing charity, suggests that nearly half of renters aged 25-34 expect to remain renting for at least ten years, highlighting a shift in mindset. This contrasts sharply with previous generations, who often viewed renting as a temporary inconvenience.

Social and Cultural Shifts

Long-term renting is not just an economic phenomenon—it also reflects changing social attitudes. In the past, landlords were often stereotyped as wealthy investors or absentee owners, while tenants were viewed as “temporary” residents. However, cultural perceptions are evolving. Modern rental properties are increasingly designed to high specifications, often incorporating amenities such as gyms, communal workspaces, and smart home technology.

The rise of “build-to-rent” developments has further normalised long-term renting. These purpose-built rental communities cater to professional tenants seeking stability, comfort, and convenience. According to Knight Frank, the UK build-to-rent sector has grown to over 100,000 units, with London and Manchester leading the way.

Moreover, digital platforms have enhanced transparency and tenant experience, making renting more attractive. Online portals, virtual viewings, and flexible contracts reduce friction and make renting a more accessible, comfortable, and socially acceptable choice.

Economic Pressures and Housing Policy

The normalisation of long-term renting cannot be understood without considering broader economic pressures. Housing affordability, wage stagnation, and rising living costs have all contributed to the phenomenon.

The Bank of England reported in 2024 that household debt levels are at a 15-year high, with mortgage approvals dipping as interest rates climb. High inflation, combined with the cost-of-living crisis, means that many potential buyers are prioritising financial security over property ownership. Renting offers flexibility and predictability in an uncertain economic climate, particularly when the upfront costs of buying are prohibitive.

Government policy has also played a role. Help-to-Buy schemes, shared ownership, and first-time buyer incentives have been useful but are insufficient to meet the scale of the affordability challenge. Meanwhile, changes in tax and regulation, such as increased stamp duty on second homes and stricter landlord licensing rules, have affected both supply and demand in the housing market, sometimes pushing more people into renting.

Generational Differences

  A key dimension of the long-term renting trend is generational disparity. Baby boomers and older Gen Xers are more likely to own homes, often outright, while younger generations are increasingly renting for longer periods. According to the English Housing Survey, 34% of households headed by someone aged 25-34 rented privately in 2023, up from just 22% in 2005.

This generational divide has implications beyond housing. Renting can limit wealth accumulation, as homeowners traditionally benefit from property appreciation. However, many young people are re-evaluating what constitutes financial security, with a growing emphasis on career mobility, lifestyle flexibility, and access to experiences rather than property ownership.

Pros and Cons of Long-Term Renting

The shift towards long-term renting is not without controversy. Supporters argue that renting offers flexibility, reduced maintenance responsibilities, and a lower barrier to entry in expensive property markets. For some, particularly those who move frequently or prioritise lifestyle flexibility, renting may be the rational choice.

However, critics highlight the downsides. Long-term renters may face insecurity if landlords sell the property or increase rents. Unlike homeowners, renters do not build equity, and rental payments contribute to wealth for landlords rather than the tenants themselves.

Security of tenure has also been a concern. While the 2019 Tenant Fees Act and more recent government reforms have improved protections, renters still often have less control over their homes compared to owners.

London and Major Cities

 London is perhaps the clearest example of long-term renting becoming a mainstream choice. House prices in the capital are notoriously high, with the average price exceeding £530,000. Even dual-income households often struggle to save for a deposit, making renting a necessity rather than an option.

Cities like Manchester, Birmingham, and Bristol are experiencing similar trends, though at a slower pace. The private rented sector in these cities is expanding, fuelled by young professionals, graduate students, and international workers seeking flexible accommodation.

Furthermore, purpose-built rental developments in urban areas are redefining perceptions of renting. They are increasingly marketed not as temporary stopgaps but as communities where residents can envisage living for many years.

The Future of Long-Term Renting

Looking ahead, several trends suggest that long-term renting may indeed become more normalised in the UK:

• Demographic Shifts – Younger generations are more likely to prioritise flexibility and experience over ownership.

• Build-to-Rent Growth – The expansion of professionally managed, purpose-built rental communities is creating a new rental culture.

• Policy Developments – Government reforms aimed at increasing tenant protections could make renting more secure and attractive.

• Technological Advances – Online platforms and digital tools streamline renting, making it easier to manage tenancy agreements, payments, and maintenance.

However, obstacles remain. Without significant investment in affordable housing and policy reforms to facilitate homeownership, many people may continue renting not out of choice but necessity.

Long-term renting in the UK is no longer confined to temporary life stages. Economic pressures, generational shifts, and evolving social attitudes are collectively redefining what it means to have a “home.” Renting is increasingly seen as a viable, long-term option rather than a compromise or stepping stone.

Yet, it is important to distinguish between renting by choice and renting by necessity. While some embrace the flexibility and lifestyle benefits of long-term renting, others are

constrained by financial realities. The challenge for policymakers, developers, and society at large is to ensure that both pathways—renting and homeownership—offer security, stability, and dignity.

As the UK continues to grapple with housing affordability, the question is no longer whether long-term renting will become normal, but how the nation will adapt to a housing landscape where renting is a central, permanent feature rather than an interim solution.