Coronavirus: Renters will outnumber mortgage holders by 2029, RBS forecasts

Home ownership in the UK is forecast to fall following the coronavirus crisis. Photo: Getty

Renters aged 35 to 44 will outnumber mortgage holders by 2029, according to forecasts by RBS.

The bank has found the proportion of private renters in that age group will leap from 29% to 47% in the next nine years as those with mortgages fall from the current level of 48%.

A strategy document shows that RBS is planning to target young tenants when things return to normal after the coronavirus crisis, according to a special report by The Mail on Sunday.

The bank is forecasting a dramatic drop in home ownership and is exploring ways to attract affluent tenants, known as “generation rent,” to financial products.

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These schemes would give tenants options to save for deposits with the help of bill-splitting services for flat-sharers or even find ways of side stepping deposits altogether,

Better mortgage options could also be made available for punctual rent-payers.

The RBS findings are in line with a previous study by The Resolution Foundation, Home Improvements, which predicted a third of UK adults would still be renting when they claim their pensions.

And figures by the Office for National Statistics reveal that tenants spend a higher proportion of their income on rent today, than two decades ago, making it difficult to save for a deposit to buy their own home.

With the Bank of England forecasting the economy will shrink by 14% this year and unemployment will rise to 9% in 2021, the impact of the pandemic could be long lasting for those already struggling to get on the housing ladder.