Levels of private renting have hit a 30-year high, according to new figures.

Since 1985, the levels of those renting from a private landlord have more than doubled, the figures from think tank ResPublica show.

The study puts this down to a decline in the number of people in council housing, as well as house values pricing many potential buyers out of ownership.

Zoë Rose, Head of London Lettings at Strutt & Parker, said: “We are finding that there is no longer such as obsession with home ownership amongst our younger tenants. The majority of our tenants are in their 20s and 30s and very used to renting. Traditionally, private Buy to Let landlords have invested in smaller units with one or two bedrooms, but I would expect to see more investment in three bedroom properties in the future, reflecting the greater number of professionals renting into their 30s and 40s, who often have young families." 

Balance switch from public to private

Thirty years ago, almost a third (30%) of houses were rented from public landlords and just 9% from private landlords.

These numbers have almost switched today with 22% renting from private and 9% from public landlords.

Homeownership levels fluctuated throughout the period, though are roughly the same now as they were 30 years ago.

In 1985, 61% of households owned their home. During the 1990s, this figure rose but fell again in 2000 with the rise in property prices.

A vision for the future

The report was inspired by a Margaret Thatcher quote in which she called for 3 out of every 4 families to have their own home. 

She also called for more people to own shares and greater independence for everyone.

ResPublica director Phillip Blond says this vision has not been fully realised.

Mr Blond says that for people and places to flourish, there must be mass home ownership.

He claims homeowners have a bigger stake in their communities and help create better neighbourhoods. He goes on to say that welfare has failed to save many and only mass ownership can end poverty.