English Housing Survey 2025: Thriving Investments’ Perspective on a Market at a Turning Point
February 2026
The 2025 English Housing Survey (EHS) offers clear confirmation of what we at Thriving Investments have long argued: the structure of the UK housing market is shifting in ways that strongly reinforce the long-term opportunity for institutionally backed rental housing. Far from being a temporary response to affordability pressures, institutionally backed renting is now a deeply embedded, structurally significant tenure. And this presents both a responsibility and an opening for investors who can provide high-quality, affordable, and professionally managed rental options.
Below, we outline the key findings and what they mean for residential investors.
Trends in Tenure
During 2024-25, there were 25 million households in England, an increase of 270,000 households in a year. Only 65% of households own their homes, and 35% rent, split between 19% private renters and 16% social renters. This share grew by 80,000 households in a single year. This marks a decisive shift in the long-term trend - renting is firmly embedded as a long-term reality for a significant share of households.
At Thriving Investments, we see this as further evidence that UK housing is changing. The assumption that most households progress quickly from renting to mortgaged ownership is no longer true. The continued rise in outright ownership, driven by ageing populations is paired with a decline in the share of mortgaged owners. The classic owner-occupier lifecycle is breaking down.
London exaggerates this trend, with 49% of people renting in the capital vs 33% in the rest of England. For investors, this reflects not only the higher values in London making home ownership less attainable, but also the demographics of London residents resulting in a greater demand for rental markets. Opportunities will exist for those who deliver a sophisticated and professional rental sector.
Thriving Investments’ view
In a market where renting is a structural fixture, investors have the option to support a range of housing solutions to improve affordability and increase institutionally provided and managed single and multi-family housing. We see this as a long-term, socially-aligned investment opportunity.
Trends in Age of Tenants and Owners
The EHS confirms what our portfolios have shown, the private rented sector is gradually ageing. More midlife households (aged 25-54) are renting for longer, much longer than previous generations. First time buyer ages continue to rise, now averaging 34 in England and 35 in London. Meanwhile, social renting spans a broad age mix but has relatively few very young households.
This is not temporary but shows how the age profile indicates delayed transitions into ownership and sustained demand for well-managed rental across the 25-54 cohort.
Thriving Investments’ view
As renters age, the market must evolve. First time buyers are purchasing later, and the market needs to focus on family sized, accessible homes in connected areas. Institutional landlords are uniquely positioned to deliver this, especially with incoming regulations, such as the Renters’ Rights Act in 2026.
Only through professional resident services can we better meet residents' needs and improve retention.
The Rental Market – Mid-market rent is the opportunity of the next decade
Affordability pressures continue to mount. Private renters now spend 34% of income on rent, and social renters 28%. This compares to last year at 34% and 26% respectively, and both higher than pre-pandemic levels with 30% of renters saying they find it hard to pay their rent; the squeeze on the middle-income family is intensifying. This illustrates the trend of longer rental journeys across England stemming from high property prices, rising living costs, mortgage market constraints, and lower real wage growth.
Thriving Investments’ view
The combination of rising rents and high rent-to-income ratios is squeezing middle income households. Our experience shows that clear rent indexation, hardship support, and income linked eligibility not only improve resident experience but also de-risk income streams for investors. Mid-market rental is not just an affordability solution – it's a resilient investment proposition.
The Sale and Mortgage Market – Barriers to home ownership
Homeownership affordability has weakened further. Mortgagors typically spend 19% of household income on payments, with 14% finding it difficult to pay. Despite this, arrears remain low at 0.6%.
First-time buyers are older and take longer mortgage terms and rely heavily on savings and family support. The average deposit is now £78,131, with 62% opting for terms of 30 years or more. We see this daily. Too many households are priced out of buying until well into their 30s – if they manage at all.
Thriving Investments’ view
Shared ownership remains an important route into home ownership by reducing deposit and mortgage income requirements. For investors, shared ownership offers access to indexed rental income and capital growth, while helping households access pathways otherwise closed to them.
This mix reinforces access constraints and extended rental journeys, increasing the relevance of intermediate pathways into ownership.
Trends in Satisfaction – Professional management matters more
Satisfaction has declined across all tenures, with social renters reporting the lowest levels. Wellbeing indicators have also weakened since pre-pandemic, and renters report higher levels of loneliness and anxiety.
Thriving Investments’ view
This a clear call-to-action. Building high-quality homes is no longer enough. Partnering with the right property managers, who focus on well-connected areas will be best positioned to deliver resilient communities. Building thriving communities, through conscientious investment and high service quality is needed more than ever.
Conclusion – Numerous market opportunities
The 2025 EHS points to a market entering a new era. A market where renting is entrenched, ownership is delayed, and affordability remains the binding constraint. Cohorts are older in rental, first-time buyers purchase later, and tenant expectations are rising.
At Thriving Investments, our view is that this is the moment for institutional investors to provide the scale and resilience the rental market urgently needs. The demand and social need are apparent, and the opportunity to build thriving, well-served communities across the UK has never been clearer.