England’s private rental is forecast to top five million households within the next two years or so.

The specialist rental platform Ocasa has analysed that after almost 20 per cent growth in the past decade, England’s private rental sector – already just shy of 4.9m homes – will pass the new threshold by 2025 at the latest.

On a regional level, the fastest growth over the past decade has been seen in the South West where private rental stock has increased 31.2 per cent from 404,768 homes to 530,975.  

The West Midlands market has grown by 25.4 per cent, in London the market has grown by 21.7 per cent, and in the North East the number is 17.3 per cent higher than a decade ago.

Taking England’s 18.8% growth over the course of a decade, it is calculated by Ocasa that between today and 2025 dwelling stock totals could increase by a further 6.4 per cent. This is equivalent to an additional 313,906 homes which will bring the national total to just under 5.2m.

Regionally, the most new homes are expected to be added to the private rental sector in London (68,336), the South East (47,500), and North West (38,075).

Meanwhile, the smallest increase in market size is forecast to come from the North East where just 13,291 new homes will be added by 2025.

Sales and Marketing Director at Ocasa, Jack Godby, comments: “The government is trying to dampen the private rented aector by making it less and less cost effective to purchase additional homes for investment purposes such as buy to let. But there is still a huge need for rented homes in England – not every can or wants to buy their own home.”