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01603 218000Rental Market Statistics 2024
With an estimated 8.6 million private and social rental homes, and 2.5 million landlords, the rental market appears on the surface to be healthy. However, with rental prices continuing to rise year-on-year, the industry poses many challenges for both tenants and property owners alike.
That’s why, as a market leading insurance broker, we felt it was the perfect time to write the definitive rental market statistics page. This piece covers everything from the regional discrepancies in rent prices to the demographics of landlords and renters.
Top 10 rental market statistics
- The number of rental homes in England has increased by over a third (36%) from 6.3 million in 1990 to 8.6 million in 2023.
- One in five (20%) of rental homes were built prior to 1919.
- As of 2023, there are 4.3 million semi-detached homes on the rental market.
- With 1.1 million private renters, London has two-thirds (66%) more private renters than the next highest region, the South East.
- A one-bedroom flat in London costs an average of £1,529 a month to rent (79% more than the next most expensive region – the South East).
- Private renters aged 16 to 24 spend nearly half (46.5%) of their income on housing costs.
- Close to a fifth (19.1%) of movers say their primary motive for moving property is to have more space.
- Between Q4 2023 and Q2 2024, the average cost of private rent increased by 8.3%.
- More than a third (34.9%) of landlords are retired in England.
- Over half (52.9%) of landlords have spent 11 or more years in the business.
Rental market statistics in England
Statistics show that the size of the rental market has increased significantly in England over the past five decades. Rental market statistics via the Government’s English Housing Survey show that between 1990 and 2023, the number of rental homes in England increased by over a third (36%) from 6.3 million to 8.6 million. However, between 1990 and 2000, this figure fell by 5%, dipping to 5.9 million in 2000.
In the ten years between 2000 and 2010-11, the total number of rental homes in England rose by almost a quarter (24.4%), hitting 7.4 million by 2010-11. Between 2010-11 and 2020-21, the total number of rental homes rose by 12% to 8.4 million.
In 1990, there were 86% fewer private rented properties than owner-occupied homes. By 2022-23, the gap had narrowed, with 70% fewer private rented properties than owner-occupied homes.
In 1990, there were also 2.5 times as many socially rented homes as privately rented properties. However, by 2011-12, privately rented homes overtook socially rented (i.e. housing association or local authority) ones for the first time ever. As of 2022-23, there were 14% more privately rented properties than socially rented ones.
Rental market statistics show that one in five (20%) rental properties were built prior to 1919. Of these, 84% are in the private sector.
There are 69% more rental houses available that were built pre-1919 than those built between 1919 and 1945. Also, 93% more available rental homes have been built since 2002, compared to the number built between 1981-90.
Rental market statistics show that three in ten (30%) rental properties are terraced houses. Of these, three in five (60%) are in the private sector.
There are 81% more terraced houses in the rental market, compared to semi-detached houses. Semi-detached houses make up close to two-fifths (17%) of rental properties, with just over half of those (51%) being in the private sector.
Purpose built low rise flats are the second most common type of rental property. Nearly three in ten (29%) rental properties are purpose built low rise flats, and more than half (56%) are in the social sector.
By comparison, just over one in 50 (2.8%) rental properties are detached houses.
Data from GOV.UK show that there are 1.8 million rental homes in England that are less than 50m². Of these, 44% were in the private sector, while 56% were in the social sector.
The most common size of rental property in England is 50 to 69m², with 2.9 million rental properties of this size. This is almost a tenth (8%) more than the number of properties sized 70 to 89m². Of the properties sized 70 to 89m², more than half (52%) were in the private sector, while the remaining 48% were in the social sector.
Number of rental homes in England by region
GOV.UK data shows that London has the greatest number of private renters, with 1.1 million renters in the city. This is two-thirds (66%) more than the number of renters in the South East, while it is more than double (106%) the number of private renters in the North West.
The region with the lowest number of private renters in England was the North East with just 205,000. This is around three-fifths (62%) fewer than in the North West and almost two-fifths (38%) fewer than the number of private renters in the East Midlands.
Across England, there were only two regions where more renters lived in social housing as opposed to private properties; these were the North East and West Midlands.
In the North East, almost a third (29%) more renters lived in socially rented accommodation, versus renting from the private sector. Meanwhile, in the West Midlands, close to a tenth (9%) lived in socially rented properties as opposed to properties rented from the private sector.
Average rent cost statistics in England
Average rent cost statistics show a 3.5% increase in average asking rents in Q2 2023. Rents rose again in the next quarter, this time by 3.8%.
The rate of increase for average rent then fell significantly to just 0.2% in Q4 2023 before rising to 0.8% for Q1 of 2024. In Q2 2024, the percentage increase then went up by 1.8%.
Regional rental market trends
Regional rent statistics show that the average price of rent per month in London was £2,661, 44% more than the next most expensive region, the South East. London was also two-thirds (66%) more expensive than the East of England, where the average rent was £1,597.
Renters in the North East typically pay the least, with a cost per month of £906. This means they pay around two-thirds (65%) less on their rent than people who live in London, and a fifth (20%) less than average renters in the North West.
Average rent cost by property type
Average rent statistics show that across all regions, London has the highest rent costs. A room in London costs an average of £757 a month – almost two-fifths (37%) more than what renters typically pay in the East and four-fifths (81%) more than those in the North East pay.
A breakdown of the average rent cost by property type in England (2022/23)
| Room monthly rents | Studio monthly rents | One bedroom monthly rents | Two bedroom monthly rents | Three bedroom monthly rents | Four or more bedroom monthly rents | |
|---|---|---|---|---|---|---|
| North East | £416 | £461 | £563 | £563 | £651 | £1,171 |
| North West | £446 | £501 | £602 | £701 | £825 | £1,313 |
| Yorkshire and the Humber | £432 | £519 | £595 | £698 | £758 | £1,445 |
| East Midlands | £484 | £509 | £580 | £698 | £817 | £1,220 |
| West Midlands | £450 | £535 | £635 | £746 | £886 | £1,343 |
| East | £549 | £665 | £792 | £971 | £1,137 | £1,677 |
| London | £757 | £1,196 | £1,529 | £1,860 | £2,274 | £3,240 |
| South East | £542 | £851 | £851 | £1,090 | £1,344 | £2,066 |
| South West | £522 | £720 | £720 | £896 | £1,110 | £1,929 |
(Source: ONS)
In London alone, renters with a one bedroom flat have to pay around a quarter (27%) more than renters with studio flats.
At the same time, in the South East, it cost almost three-fifths (57%) more to rent a three bedroom flat than a one bedroom flat.
Average rent as a proportion of household income in England
The average percentage of income spent on rent by age shows that people aged 16 to 24 spend close to half (46.5%) of their income on private rent. This is almost a fifth (17.4%) more than private renters aged 25 to 34.
The age group that typically pays the second highest percentage of their income were those aged 75 and above. Private renters in this age group spend more than a third (35.1%) of their income on housing costs – 6.2% more than what 35 to 44-year-olds typically pay.
In terms of social renters, people aged 16 to 24 typically spend close to three-tenths (29%) of their household income on rent. For social renters aged 65 to 74, this figure was just over a quarter (25.7%).
Average rent statistics show that those in full-time work spend more than a quarter (25.8%) of their income on housing costs. This is 7.3% more than what social renters in full-time work typically pay.
Those in full-time education spend the highest proportion of their income on private rent, with seven-tenths (70.1%) going towards these housing costs. This is in stark contrast to social renters in full-time education who spend just over a quarter (27.7%) of their income on rent.
Data from GOV.UK found that the region where private renters spend the most of their income on housing costs was London, with more than four in ten (42.3%) of private renters’ income being spent on housing costs.
This was followed by the North West, where private renters spent close to a third (30.1%) of their income on housing costs. The East had the third highest percentage, at 30%.
As for social renters, housing costs in London once again were the greatest expense, with Londoners spending close to a third (30%) of their income on housing costs. The region where social renters typically pay the least was the South West, where tenants spend less than a quarter (23.3%) of their income on housing costs.
Average tenancy length for private renters in England
Private rental statistics show that the most common average tenancy length for private renters was less than one year. In all, more than one fifth (22%) of private renters had been in their property for less than a year. Of these renters who had been in their property for less than a year, three in five (60%) were aged 16 to 34.
The next most common response was five to nine years, accounting for around one in five (19%) respondents. Of those, more than two in five (41%) were aged 45 to 64.
Average tenancy length for social renters
Data by GOV.UK shows that the most common average tenancy length for social renters was 10-19 years. In all, almost a quarter (24%) of social renters had been in their premises for this amount of time. Of those, less than half (45%) were aged 45 to 64, while almost two-thirds (65%) were aged 35 to 64.
The next most common response was 5-9 years, with more than a fifth (22%) of respondents saying that they had lived in their property for this length of time. Of those, more than a third (36%) were aged between 45 to 64.
Moving habits among renters
Statistics from GOV.UK show that the leading reason renters move house is to have a larger house/flat, with almost a fifth (19.1%) saying this was their primary motive. The next leading reason was to have nicer accommodation, something supported by 3.8% fewer movers.
Nearly one in ten (9.9%) renters said that moving to a cheaper or smaller house or flat was a reason for moving, suggesting that the rental crisis has affected the habits of renters struggling to get by.
Rental crisis
What is the rental crisis?
The rental crisis is the result of a combination of factors. With inflation only recently hitting the 2% target set by the Bank of England, renters are also being hit by rapid rent rises. According to the ONS, private rents rose by 8.9% in the year leading up to June 2024, meaning many tenants have found it hard to keep up with the spiralling costs.
Renters receiving housing support
Rental market statistics show that the West Midlands leads the way in the percentage of private renters receiving housing support. In all, 35.76% of private renters receive housing support, 6.4% more than the next highest, which was Yorkshire and Humber.
The region with the lowest percentage of private renters receiving support is London. In this region just 17.3% of private renters are on housing support.
The region with the highest percentage of social renters in receipt of housing support is the East Midlands, with 64.4%. This is just 0.4% greater than the North West.
In terms of social renters, the East has the lowest percentage, with 55.14%, followed by London and the West Midlands.
In regard to private renters, the most common age for receiving housing support is between 25 and 34. Around 1.38 million people in this age bracket receive housing support, more than double (135%) those aged 16 to 24, and two-fifths (41%) more than those aged 35 to 44.
The age bracket with the second highest number of private renters receiving housing support is 45 to 64, with 1.22 million renters. In all, there are 4.5 million private renters in receipt of housing support, while there are four million social renters receiving housing support.
Effect of housing support on rent
Rental crisis statistics show that the amount of housing support received for both private renters and social renters has increased since 2008-09. In 2008-09, the average amount of housing support for a private renter was £100 per month, which had increased to £115 (+15%) by 2011-12.
Between 2011-18, the average amount of housing support received fell by 13% from £115 to £100. Since then, it increased by 13% to £113, and then rose another 17% to £133 by 2022-23.
For social renters, between 2008-09 and 2014-15, the average amount received increased by three-tenths (28%) from £62 to £80. By 2022-23, the average amount had risen by 8.75% from £80 to £87.
Number of renters in rent arrears
Rent arrears statistics show that 1.7% of private renters are currently in arrears. This statistic has gradually fallen since 2011-12, when one in 20 (5%) of private renters were in arrears. This almost halved by 2019-20 to 2.6%, before experiencing a slight rise after the COVID-19 pandemic.
The data shows how many renters are either in arrears or have been in arrears in the past. ‘Currently in arrears’ refers to the percentage of renters who were in arrears when the data was recorded (or had been in arrears at a specific point of the year for previous years). ‘Have been in arrears’ refers to the percentage of renters who have been in arrears in the last 12 months. ‘All arrears’ are the two figures combined.
In 2011-12, more than one in ten (10.9%) of renters reported being in arrears all of the last year. As of 2022-23 this figure has since halved to just over one in 20 (5.3%).
GOV.UK data also shows that 5.9% of respondents in 2011-12 said that they had been in arrears in the past. This figure trickled down to 4.7% by 2014-15, before rising again to 5.3% in 2016-17.
As of 2022-23, 3.6% of private renters stated that they had been in arrears in the past – 2.3% less than in 2011-12.
With so many private and social renters in arrears, it is a good idea as a landlord to get rent guarantee insurance.
For social renters, the rate of being in arrears is higher than private renters, with close to one in ten (8.5%) reporting that they were currently in arrears as of 2022-23. This figure has halved since 2013-14, when 15.3% of social renters were in arrears.
GOV.UK data shows that 15% of social renters reported being in arrears all of last year, a fall of 14.6% in comparison to 2013-14. The GOV.UK data ranges from 2011/12 to 2022/23, with no data from the years 2017/18 to 2018/19.
Rental demographics statistics
Age of renters in England
Statistics on rental demographics indicate that the most common age for private renters is 25 to 34, while for social renters it is 45 to 64.
In regard to private renters, more than two in five (42.6%) are aged between 16 and 34, whereas less than one in five (17.9%) social renters fit into this age category.
Older people are far more likely to rent socially than they are to rent privately. More than a quarter (27.6%) of social renters are aged 65 and over, while fewer than one in ten (9.7%) private renters fit into this bracket.
Rental household types and sizes in England
Rental statistics show that three in ten (30.4%) private renters have children, compared to more than two in five (44%) who buy their property with a mortgage.
A breakdown of the types of households with and without children (000s)
| Number of households | Percentage of households | |
|---|---|---|
| Own outright | ||
| With children | 532 | 6.2 |
| No children | 8,079 | 93.8 |
| Buying with mortgage | ||
| With children | 3,167 | 44 |
| No children | 4,029 | 56 |
| Private renters | ||
| With children | 1,398 | 30.4 |
| No children | 3,197 | 69.6 |
| Local authority | ||
| With children | 495 | 32.3 |
| No children | 1,037 | 67.7 |
| Housing association | ||
| With children | 744 | 30.1 |
| No children | 1,730 | 69.9 |
| All social renters | ||
| With children | 1,239 | 30.9 |
| No children | 2,767 | 69.1 |
| All households | ||
| With children | 6,335 | 26 |
| No children | 18,072 | 74 |
(Source: GOV.UK)
Both private renters and social renters are less likely to have children than those who buy a property with a mortgage. However, only 6.4% of properties that have been bought outright house children.
In all, around a quarter of properties (26%) have children in them, compared to 74% which do not.
Status and income of renters in England
In 2022-23, half of all households (50%) had a household reference person (HRP) working full-time, one in ten (10%) had a part-time working HRP, and close to a third (29%) were retired. A household reference person is a term used in surveys to explain who represents the household in statistical reporting.
Approximately one in 50 (2%) households were unemployed, 1% were in full-time education, and 7% were classified as ‘other inactive’, which includes those with long-term illness or disability and those caring for family or a home.
Private renters had the highest proportion of households in work (65%) while the social rented sector had the highest proportion of economically inactive households (24%).
Landlord demographics statistics
Number of landlords
Landlord demographic data show that 93.7% of landlords are private individuals, with fewer than one in 20 (4.7%) working for limited companies.
In all, just 1% of landlords work privately and as part of a limited company. These are individuals who might own some properties directly in their own name, while also owning others through a limited company or another corporate structure.
Age of landlords
Landlord demographic statistics show that close to a third (31.1%) of landlords are aged 55-64. The data also indicates that more than half (53%) of landlords are aged 45 to 64. Meanwhile, 54.8% of landlords are aged between 55 and 74.
Landlord demographic statistics also show that just 14.9% of landlords are younger than 45 years old, while just 8% are aged 75 and above.
Gender of landlords
Statistics from GOV.UK show that more than half (55%) of landlords are men.
Just over four in ten (44%) landlords are female, with 55% identifying as male and 1% identifying as ‘other’.
Employment status of landlords
Rental market statistics show that the most common profession for landlords is retired, accounting for more than a third (34.9%) of the landlord population. This is 5.2% more than the next most common answer, which was full-time employed.
More than one in ten (13.5%) landlords are self-employed as landlords, whereas close to three in ten (29%) of those who have tenancies are also self-employed as landlords.
One in 50 (2%) landlords are either unemployed, students, or work as full-time carers.
Number of years as a landlord
More than half of landlords (52.9%) have owned property for 11 or more years. More than nine in ten (91.4%) landlords have owned property for four or more years.
At the same time, close to half (47.1%) of landlords have been in the industry for fewer than 11 years.
Size of rental portfolio
Rental market statistics show that more than two in five (43%) landlords have just one property in their portfolio. With 39.3% of landlords having two to four properties on their books, it means that just under a fifth (17%) of landlords have more than four properties on their portfolio.
A breakdown of the size of the rental portfolio of landlords
| Number of properties | Owning property as an individual or group of individuals | As part of a limited company | As both | Other | Total |
|---|---|---|---|---|---|
| 1 | 170,962 | 2,013 | N/A | 605 | 173,926 |
| 2 to 4 | 150,531 | 6,474 | 1,001 | 945 | 158,958 |
| 5 to 9 | 39,410 | 4,564 | 1,264 | 136 | 45,374 |
| 10 to 24 | 14,851 | 3,599 | 1,144 | 145 | 19,780 |
| 25 to 100 | 3,077 | 2,118 | 487 | 63 | 5,796 |
| More than 100 | 132 | 350 | N/A | N/A | 482 |
(Source: GOV.UK)
*N/A = data unavailable.
In terms of overall numbers, 332,884 landlords have one to four properties in their portfolio. This is more than seven times greater than the number of landlords who have five to nine properties. 25,576 landlords own more than ten properties, equating to 6.3% of all landlords.
Landlords’ future plans
Statistics from GOV.UK show that between 2022 and 2023, close to half of landlords (47.7%) were content with keeping the size of their property portfolio the same.
Just over one in ten (12.3%) were planning on decreasing the size of their portfolio – 1.6% more than those who planned to increase the size of their portfolio.
Almost one in ten (9.6%) planned on selling all their properties and leaving the business altogether. This, combined with the number selling some of their properties, suggests that there may be fewer properties available for rent in the future.
‘Recent legislative changes’ was the leading cause of landlords wanting to scale back their portfolio, with more than half (54.9%) identifying this as a factor.
This was closely followed by ‘forthcoming legislative changes’, which just 2.1% fewer landlords felt was an issue.
Fewer than one in 25 (3.2%) said that ‘too many problems with tenants’ was a reason for reducing their portfolio size.
The leading reason as to why landlords wanted to increase or keep their portfolio the same was for ‘financial reasons’, with close to six in ten (57%) surveyed giving this reason.
This is a fifth more than those who cited ‘personal reasons’ as the main factor for increasing or maintaining their portfolio.
Fewer than one in 20 (3.8%) landlords said that ‘forthcoming legislative changes’ were encouraging them to keep their portfolio the same or expand it.
FAQs
What do you need to rent privately?
To rent a property privately, you typically need a deposit, first month’s rent, proof of identity, proof of income, references, and a signed lease agreement. Additional requirements may include a credit check, a guarantor, and renter’s insurance.
What are my rights as a private tenant in the UK?
As a private tenant in the UK, you have the right to a safe and habitable property, protection from unfair eviction and rent increases, and the right to have your deposit protected in a government-approved scheme. Additionally, you have the right to request repairs and maintain tenancy privacy with proper notice before landlord visits.
What percentage of people are private renters?
As of 2024, data from the ONS shows that approximately a fifth (20.3%) of households in the UK are private renters. This data reflects the current distribution of housing in the country, showcasing how many people rely on the private sector for accommodation.
Are private rents increasing?
Yes, private rents are increasing. As of June 2024, the average private rent in Great Britain rose to £1,271 per month, reflecting an 8.6% increase from the previous year.
What is the average cost of private rent in the UK?
As of June 2024, the average cost of private rent in the UK is £1,271 per month. This figure represents the average rent across the country, factoring in variations by region and property type.
How to save for a home deposit while renting?
To save for a deposit while renting, create a budget to track your spending and cut unnecessary expenses. You can also set up automatic transfers to a dedicated savings account or dedicated Lifetime ISA (LISA). Additionally, consider reducing rent by moving to a less expensive area or sharing accommodation with roommates.
Do you need home insurance if you are renting?
The building itself is likely to be insured by the owner of the property, but tenants may want to protect their own belongings by taking out tenant’s contents insurance.
What is social housing?
Social housing is affordable housing provided by Government or non-profit organisations aimed at supporting low-income individuals, families, or those with special needs. It offers long-term, secure rental options at below-market rates to ensure access to safe and stable living conditions.
What is private housing?
Private housing refers to residential properties owned by individuals, companies, or private landlords rented or sold at market rates. Unlike social housing, private housing is driven by market conditions and typically offers fewer affordability protections for tenants or buyers.
What is a housing reference person?
A housing reference person is the individual identified as the main person responsible for the household in surveys on censuses. It is a term often used as a point of reference for household-related data collection.
Sources
https://www.rightmove.co.uk/news/rental-price-tracker
https://www.bigissue.com/news/housing/rent-rises-rental-crisis-inflation-cost-of-living
https://www.gov.uk/government/news/millions-of-renters-better-off-with-boost-to-housing-support
https://www.alanboswell.com/landlord-insurance/landlord-insurance-statistics