History of Renting
From traditional leases to modern Rent to Own, explore the journey of renting over time.
History of Renting
No market stands still. Society and culture change, legislation, Governments and Laws change and Innovative, progressive private companies like Property Step can shape the housing evolution. History is a good place to start, to the present day and where it could be going in the future.
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1920's
80% of the population rented their homes, nearly all from private landlords, with the passing of the Housing Act 1919 the local authority started to build council housing, 350,000 a year.
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1930’s
Interest rates were at 2%, new industries were expanding and more building continued.
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1940’s
Housebuilding came to a halt due to WWII.
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1950’s
House building grew once again, more private and council homes were in demand and building increased through to the 1960’s.
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1960’s
Through the 1960’s we were building large tower blocks and council estates. By the end of the 1960’s, 50% rented and 50% owned their own home.
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1970’s
Britain experienced the first housing bubble, after two decades between 1950 and 1970, average house prices went from £2,000 to £5,000, however, between 1970 and 1973, in just three years house prices doubled.
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1980’s
Homeownership boomed. Only 9% of the population rented. The property market peaked in 1988 with interest rates at 15%. Then the housing market collapsed.
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1990’s
1989 to 1994 was a long recession. Changes in legislation, Assured Shorthold Tenancy Agreements came into force. Meaning evicting bad tenants was easier, reducing risk. This bought about the introduction of buy to let mortgages.
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2000’s
The buy to let boom continued pushing up property prices, reaching a record high in 2007, quickly dropping an average of 20% with the ‘credit crunch’ in 2008. Interest rates dropped to a record low of 0.25%.
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2010’s
21% of the population now rent. A fluid market, growing gig economy, healthy immigration, record low unemployment. Brexit 2018/2019. Increased legislation for the rental market.
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2020’s
The rental population sits at circ. 25%. The barrier to enter on being a small landlord will be much harder, with a substantial increase in legislation and addition tax, means this will reverse the trend of small landlords. However, 'build to rent' in booming with corporate landlords entering the market.