The Growth of the Private Rented Sector
The UK Private Rented Sector (PRS) shrank to just 9% of households by the late 1980s, but deregulation and the BTL boom caused it to double in size to roughly 19% today.
At the beginning of the 20th century, nearly 90% of all UK households rented privately. However, the rise of council housing and the expansion of owner-occupation throughout the 1900s caused the Private Rented Sector (PRS) to enter a long decline.
By the late 1980s, the PRS had shrunk to a historic low, housing only around 9% of the population. Rent controls and strong tenant security made it an unappealing investment for landlords.
The Reversal
The introduction of the Assured Shorthold Tenancy in 1988 and Buy-to-Let mortgages in 1996 completely reversed this trend. Over the last 25 years, the PRS has more than doubled in size. Today, private landlords house approximately 19-20% of all UK households, representing a massive structural shift in how the nation is housed.