The number of households in the UK is growing, according to new figures from Legal & General (L&G) and the Centre for Economics and Business Research (CEBR).

However, while we are seeing a greater number of households, there are actually less people in them, the figures shows.

Changing demographics

The number of households in the UK is predicted to rise to 31.2m by 2030, up by over 20% from the 27.5m this year.

But the size of the average household has shrunk since the 1970s and is predicted to continue in this pattern over the next 15 years.

The average household now contains 2.3 people – down from 2.96 in 1970. It is predicted to fall to 2.25 in 2030.

Part of the reason for this is what researchers are calling a ‘mismatch in housing supply’.

As households get smaller, the demand for 1 and 2 bedroomed properties is growing. However, developers have not adjusted for this change yet with only 41% of new homes in 2014 fitting into this bracket. This has dropped from just over half in the five years to 2010.

Mark Holweger, a managing director at L&G says that we have moved from homes having parents and 2.4 children to just having 2.4 people.

He says smaller households now inhabit ever-smaller properties, which is leading to a higher numbers of overall households.

Strutt & Parker’s Housing Futures report also showed a move towards smaller households.

It found that of the people who responded to their survey that were currently single and planning to move in the next five years, 75% anticipated staying in a single-person household.

Stephanie McMahon, Head of Research at Strutt & Parker, says that the impact of these trends inevitably means that the future homes we plan, design, build and live in must be different.

Owner occupiers and renters

The study also looked at the levels of owner-occupiers and renters.

The volume of people owning their home has fallen in the past 10 years, while those renting has risen. In England, a fifth of households rent, and this is expected to rise to nearly a third by 2030.

The report also shows how people are moving towards urban centres. In 1950, nearly a quarter (22%) of the population lived in the countryside. This is predicted to drop to just 14% by 2030.