Frank O'Donnell

According to a report this week, long-term private renting is set to make a comeback among young adults. It also predicts that many homeowners will cash in on the equity on their homes and rent more cheaply instead. According to a report this week, long-term private renting is set to make a comeback among young adults.

The survey, by unbiased.co.uk, the body that represents Britain’s independent financial advisers, found that in 2010 as many as 2 million homeowners might sell their homes and rent instead – creating a new generation of “sell to renters”. The survey found that the freedom to move more easily around the country was cited as the most popular attraction of renting.

As many house prices remain out of reach for the new generation of debt-laden, job-hunting graduates, unless they have parental support renting is not seen as a choice but a necessity as finding a 25% deposit is virtually impossible.

In 1939, 55% of households in Britain were privately renting, but by the late 1980s this had collapsed to a low of just 8%. Over the past decade, private renting began to increase again, jumping to 14% in 2008, according to the official Rugg review, published last year.

As the demand for rented accommodation is on the increase, this opens up more opportunities for Buy-To-Let investors as more people will be looking to rent, as opposed to buying.