Ten years ago 71% of the nation's householders owned their own homes and since then it has fallen to 65% and a new report, "Nation Rent" forecasts that by 2041 the figure will end up at just under 50%.

Demand for housing has exploded with the increasing population and coupled with the high growth of the buy-to-let market and the economic situation has given no other option for a large percentage of potential homeowners than to rent privately from landlords. The report's name "Nation Rent" is certainly a new term and is forecasted for the next generation.

The two authors are housing experts Natalie Elphicke and Calum Mercer of Million Homes, Million Lives and in the report they say that renting a home is not what people want and they state there is always the strong expectancy and goal for people to own their own home. 

Over 75% of people currently living in rented accommodation and just over half in social housing homes want to eventually buy their own homes.Apparently just 3% of those surveyed saw long term renting as their future.

 Report co-author Natalie Elphicke said: “We are at a turning point in how we finance and build new homes through pension funds and others large investors who intend to rent the homes out for the very long term.

"Yet it needs to be possible for people to buy their homes as their circumstances allow in order to meet the home-owning aspirations of the British people. It would be wrong to allow the current trends to continue.
 
"We need a creative and imaginative new approach to bring big new players into housing finance and unlock their wealth in a way that will be good for people seeking a home of their own and for investors looking for good long-term returns.
 
“By setting out a whole of market solution, the Million Homes approach will also ensure a steady supply of privately rented and social housing so that people will be able to match their housing needs at different stages in their lives to their circumstances."
 
Report co-author Calum Mercer added: “The technical work we have undertaken at Million Homes, Million Lives shows that institutional investors who intend to rent out homes for the long term can make just as good a return if they enable renters to buy as and when they are able to do so.
 
“By setting up these large property funds so that they are designed to build a better blend of owner-occupied, private rented and social housing, a range of quality rented homes and opportunities to buy can be provided to suit different needs and aspirations over time.
 
“The solution lies in overhauling housing markets so that they attract far more investment from big financial institutions and create mixed portfolios of housing spread across owner occupation, private renting and social housing.
 
“Detailed analysis of projected returns shows that over 40-50 years, such portfolios would produce strong and stable returns to investors while meeting popular demands for home ownership plus other quality forms of housing tenure, including affordable and social housing.”