The stats that highlight how young families in the UK are being ‘priced out of homeownership’

Children are now more likely to live in Britain’s private rented sector than working-age adults, a new report reveals.

This shift is being driven by young families being priced out of homeownership and having to rent for longer periods of time.

The number of children in privately rented homes has almost tripled over the last quarter-century, rising from 1.1 million in 2000-01 to an estimated 3.2 million in 2024-25, according to the Solution Foundation.

Their analysis shows that 23 percent of children reside in the sector, compared to 22 percent of working-age adults.

This demographic shift coincides with the private rented sector having more than doubled since the turn of the century.

It is currently home to 12.9 million people in 5.1 million households; this is a significant increase from 5.1 million people in 2.5 million households in 2000–01.

The research found that this expansion fundamentally changed tenant characteristics.

Although people in their 20s are still the age group most likely to become private tenants (37% in 2024-25), the share of people in their 30s over this tenure has almost tripled between 2000-01 and 2024-25, from 10% to 28%.

The foundation said the lack of security, particularly for young families, underlined why the rights included in the UK’s recently introduced Tenant Rights Act 2025 were needed.

The law marks the end of Chapter 21 “no-fault” discharges; This means private landlords cannot evict tenants without a valid reason.

Landlords must also reasonably consider tenants’ requests to live with pets.

Tenants can also challenge unfair rent increases.

The foundation’s work focuses particularly on low- and middle-income households, those in low-paid or insecure jobs, and those who are vulnerable to financial shocks.

Private renters in the UK spend on average around 35 per cent of their income on housing costs, which is above the 30 per cent threshold generally considered affordable, the report said.

“The impact of rent on disposable income is particularly severe for low-income people who receive assistance with their rent through the benefits system,” the report said.

Hannah Aldridge, a senior research and policy analyst at the Resolution Foundation, said: “For a growing number of people, the private rented sector is a permanent home rather than a stop on the road to homeownership or social tenancy.

“Children are now more likely to live in private rented accommodation than working-age adults, and the number of private renters in their 30s has also increased as homeownership prices for young families have fallen.

“But private rented accommodation is more likely to be damp and energy inefficient than other housing, and many vulnerable private tenants report feeling so unsafe in their homes that they are unable to make long-term decisions.

“The Tenant Bill of Rights would alleviate some of these concerns by setting minimum property standards and offering greater security.”