The number of households with children owning a property with a mortgage has dropped 20 percent in the last 20 years, with more families now renting than buying, new research reveals.
Analysis of Office for National Statistics data by specialist lender Perenna shows that around 803,000 fewer households with children own a property with a mortgage compared to two decades ago. That figure has fallen to approximately 3.2 million households.
Over the same period, the number of families in the private rented sector has more than doubled – an increase of 834,000 households. Approximately 1.5 million households with children now rent privately, equal to a third of the entire rental market.
Affordability crisis deepens
The ONS data shows the number of households with children across all tenures has risen by just 1 percent since 2004. By comparison, households without children have increased by 20 percent.
Colin Bell, co-founder and COO at Perenna, said the findings painted a stark picture of the current UK housing market.
“We have been stuck in the grips of a mortgage affordability crisis for nearly two decades, compounded by a lack of suitable housing stock and a simultaneous lack of investment in alternative tenures,” Bell said.
“This reality is leaving hundreds of thousands of families unable to get onto the property ladder at all, exposed to ever-rising rents and often unsuitable properties, and we need to find a much more effective way to support them.”
Calls for mortgage innovation
Bell called for greater innovation in mortgage lending to help families access homeownership. He pointed to affordability-led low-deposit mortgages and higher loan-to-income lending as potential solutions.
“Longer-term fixed rates with affordability based on the fixed rate will enable families to access more finance, giving them the ability not only to get on the ladder, but to stay on it in property that suits them as well as giving them fixed payment stability for longer,” he said.
“Taking action will create a nation of happy homeowners who can build equity and financial stability and drive our economy forwards – not a group of renters for whom buying remains a pipedream.”
This follows Landlord Knowledge’s coverage of first-time buyer data showing mortgage lending hit post-pandemic highs in February, with FTB numbers surging 18 percent year-on-year. However, the longer-term trend shows families increasingly locked out of ownership.
What this means for landlords
- Family tenants are now mainstream: With a third of the rental market now families with children, landlords should expect family tenants as standard rather than the exception.
- Property condition matters more: Families require safe, well-maintained homes – the Decent Homes Standard will formalise expectations already held by this growing tenant demographic.
- Longer tenancies ahead: The Renters Rights Act removes fixed terms, but family tenants typically want stability anyway – landlords can expect lower turnover from this cohort.
- Pet policies under review: Families with children are more likely to have pets – the RRA’s new pet provisions align with this demographic shift.
Editor’s view
The data confirms what many landlords already sense: the private rented sector is no longer a stepping stone but a permanent home for millions of families. That shift has policy implications – but it also means landlords offering quality family accommodation are meeting genuine long-term demand.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 10 March 2026
Sources: Perenna, Office for National Statistics
Related reading: Mortgage lending hits post-pandemic high as FTB numbers surge 18%
